Nationals demand regions be spared from luxury car tax

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The federal government’s luxury car tax continues to attract scrutiny in the wake of General Motors’ decision to axe the Holden brand. Several Liberal MPs have called for the tax to be scrapped, while some members of the National Party have called for people in regional areas such as farmers to be exempt from paying it. Treasurer Josh Frydenberg says abolishing the tax is not on the government’s agenda at present, although he has not ruled out such a move:

Queensland Nationals Matt Canavan and Barnaby Joyce said there should be a carve-out from the tax for people in regional areas…

“Many farmers have to buy ­vehicles that are above that threshold to operate their business,” Senator Canavan told the Nine Network…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.