Luxury ute tax loophole costs Australians $250m a year, researchers say

[Franco Cozzo]

Uh oh, they're onto the loophole:

Luxury ute tax loophole costs Australians $250m a year, researchers say

The Australia Institute says tax exemption on ‘commercial vehicles’ with no testing requirement is incentivising people to buy utes instead of EVs

A loophole in Australia’s tax law is in effect subsidising the price of luxury utes such as Ram and Chevrolet SUVs, costing taxpayers more than $250m a year in forgone revenue, an analysis has found.

However, the LCT does not apply if a car is “a commercial vehicle designed mainly for carrying goods and not passengers”. This is defined as a car that can carry twice the weight in payload than it can carry in people – a requirement which almost every dual-cab ute on the market in 2024 can meet, according to the Australia Institute.

The Australia Institute concluded the LCT exemption loophole for utes should be ended because it acts as an incentive to buy vehicles that are worse for the environment. They also raised its cost to national tax revenues; the LCT was estimated to raise $1.3b in 2023-24, slightly more than the commonwealth spends each year on the ABC.

The Institute analysed tax and sales data and found that most of the cost of the exemption was related to the largest, most expensive utes, including those from US brands Ram and Chevrolet.

https://www.theguardian.com/australi...-evs-taxpayers

They're hitting all the 'key words' - loophole, revenue, incentive, environment

[kevino]

Got to be balanced against the car 'assembly' rebuild plants that convert these to rhd in Vic.
Be quite a lot of employees work there.

[Franco Cozzo]

Originally Posted by kevino

Got to be balanced against the car 'assembly' rebuild plants that convert these to rhd in Vic.
Be quite a lot of employees work there.

Lot of people worked in the automotive manufacturing industry in Adelaide, Melbourne and Brisbane but they're long gone too so don't be too sure the government won't turn around and make changes

[naddis01]

Originally Posted by Franco Cozzo

https://www.theguardian.com/australi...-evs-taxpayers

Here comes the next money grab.

How about instead more BS taxs, they abolish the stupid luxury car tax in the first place.

[Franco Cozzo]

Originally Posted by naddis01

Here comes the next money grab.

How about instead more BS taxs, they abolish the stupid luxury car tax in the first place.

I'll remove LCT, in exchange for a 15c/L increase on fuel excise, applicable only to diesel, but exemption for vehicles over 4495kg GVM.

Watch how quick Ecoboost Ranger would be introduced into the market

[kevino]

That’s inflation causing

What about the thousands of commercial vehicles under 4495 kg gvm doing last mile delivery?

Hmmm?

[Franco Cozzo]

Originally Posted by kevino

That’s inflation causing

What about the thousands of commercial vehicles under 4495 kg gvm doing last mile delivery?

Hmmm?

Thats easy - problem for the RBA which is independent from the government, inflation is their scope, they can raise interest rates to combat it.

Alternatively, I'll get rid of LCT, but you're giving me an extra 10% in GST, bringing it up to 20%.

[kevino]

Those pesky Russians in Lancefield are giving you some wackadoo suggestions

[smoo]

This is defined as a car that can carry twice the weight in payload than it can carry in people

Considering the obesity pandemic, and the increasing amount of house bound junk food eating over weight single mothers, I’d have thought this rule will have been amended by now.
5 obese Aussies is well and truely more than half payload of everything short of a super duty pick up.