Release: Luxury car tax failed to save Holden

Release: Luxury car tax failed to save Holden

The Australian Taxpayers’ Alliance, the nation’s largest grassroots advocacy group representing taxpayers, today demanded to know why Treasurer Josh Frydenburg opposes a cutting a failed protectionistic tax, the luxury car tax, which has harmed farmers and individual Australians alike. 

“It is time we drive the Luxury Car Tax out of Australia,” said ATA Policy Director, Emilie Dye. “Holden has reached the end of its road, making an unfair tax even more pointless.

“It appears Frydenburg doesn’t want to lose a chunk of government revenue he could spend supporting his favourite sports teams. It isn’t the government’s job to pick winners and losers and yet they keep favouring certain businesses and groups over others.

“Taxes like the luxury car tax are one of the reasons people don't trust lobbyists. Rather than competing against other vehicles to create better more affordable products, car companies grabbed their blankies and lobbied the government to get rid of their mean competitors.”

“As is standard for sloppy taxes, the government failed to tie the luxury car tax to inflation. So as the buying power of a set dollar amount inevitably decreases, the luxury car tax metamorphoses into a ‘kind-of-nice’ car tax and eventual into just a car tax.

“Most people think of Porsches, not Kenworths when politicians talk about the luxury car tax. Senator Matt Canavan nailed it when he said at the very least Australia needs an exemption for farmers. Too often pollies forget the impact of legislation on people living in regional Australia.”