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.”
 has called on the Federal Government to abolish the Luxury Car Tax (LCT). Learn more.){kind=link}
“consideration of a road user charge”? So if you live in regional Australia where public transport is lacking, less medical specialists available, shops and other infrastructure may be further away and on average earn less than people in big cities will be hit financially as you need to travel further sometimes much further than people in cities.
How will this impact food costs that are grown in regional areas? A lot of farms and frieght companies are already being squeezed.
The Federal Chamber of Automotive Industries clearly is only interested in looking after the wealthy and associated businesses and saying stuff the low and middle income Australians.