FCAI calls on the Federal Government to abolish Luxury Car Tax

The Federal Chamber of Automotive Industries (FCAI) has called on the Federal Government to abolish the Luxury Car Tax (LCT) rather than use it as what they say is an ill-conceived money grab. 

The LCT was originally created as a means of protecting Australia’s local vehicle manufacturing industry. Given that local manufacturing in Australia ceased in 2017, the FCAI stated that this makes the LCT redundant and should be scrapped, calling it a handbrake on the industry bringing the best fuel efficiency and safety technologies to Australian consumers.

FCAI Chief Executive, Tony Weber, said at a time when we are encouraging Australians to buy low-emission vehicles, the Government is putting a greater tax on them. “The LCT penalises Australian consumers, as it imposes unnecessary additional taxes on many low emission technology vehicles,” Mr Weber said.

“If the Australian Government wants to modernise the LCT, they should remove it as part of the true tax reform for the transport sector, including consideration of a road user charge. Australians need real tax reform, rather than tinkering at the edges.”