LUXURY CAR TAX INEQUITABLE
The Member for Berowra, Philip Ruddock MP said today that the Labor Government’s legislation to increase the Luxury Car Tax fails every principle of a well designed tax.
“It is inefficient, inequitable, complicated and costly to administer,” Mr Ruddock said.
The Labor Government will exempt small European luxury cars including the Jaguar X Type, Mercedes Benz C Class and the BMW 5 Series. Not one Australian-made vehicle is exempted.
In one of the more inequitable exemptions, a person who owns a farm can claim a refund for a four wheel drive vehicle but a fencing contractor working on the same farm and driving an identical vehicle must pay the additional tax.
The Rudd Government has no mandate for increasing this tax and it is hypocritical of the Government to introduce this tax increase without any consultation or review and to not refer it to the Henry review of taxation.
At the same time the Government cannot make a decision to give a $30 per week increase to single age pensioners until the Harmer review reports next year.