Tax experts call for scrapping of archaic Luxury Car Tax

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Tax experts have renewed calls to abolish the Luxury Car Tax, which was introduced in 2000 by the Howard Government to protect the local car assembly industry:

In a submission ahead of the May 2022-23 Federal Budget announcement, professional accounting body – Certified Practising Accountants (CPA) Australia – said Luxury Car Tax was a complex and costly “remnant” of the bygone era of Australian manufacturing…

Since Luxury Car Tax was indexed to inflation – and the cost of new cars has risen – Luxury Car Tax has inadvertently hit more Toyotas than it has Porsches…

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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.