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Opposition to ease Luxury Car Tax confusion.



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- MEDIA RELEASE - SENATOR THE HON. ERIC ABETZ Deputy Leader of the Opposition in the Senate Shadow Minister for Innovation, Industry, Science and Research

Media enquiries: Brad Stansfield 0419 884 666 1

A0857 1st July 2008

Opposition to ease Luxury Car Tax confusion

In the light of continuing confusion caused by the Rudd Government about if, when, and what thresholds will apply to the Luxury Car Tax this financial year, the Opposition has today confirmed that it will move an amendment to the legislation which removes some of this uncertainty.

“The Opposition has taken the decision, not-withstanding the outcome of the current Senate Inquiry into the proposed Luxury Car Tax increase, that people who ordered so-called luxury cars before the 14th May this year, but have yet to take delivery, should not be subject to the

proposed increase in the Luxury Car Tax, should it become law”, the Shadow Minister for Innovation, Industry, Science and Research, Senator Abetz said.

“People who ordered cars before the 14th May did so in good faith and with no inkling that come the 14th May they would be subject to an extra 8 percent in tax.

“These people put down deposits and signed purchase contracts.

It is quite clearly untenable that people be forced to pay an increased tax simply because their car may not be delivered before - if - the new tax rate comes into law.

“Therefore, the Opposition will move, as a minimum, an amendment to ensure that people who ordered so-called luxury cars before 14th May, but have yet to take delivery, will not be subject to the increased tax, should it become law.

“This decision does not in any way indicate our support or otherwise for the proposed Luxury Car Tax increase.”

Senator Abetz said that the continuing confusion about when and if the increased tax would apply from was entirely the fault of the Rudd Government, who had sought to increase the tax without any legislative basis or proper consultation.

“The Opposition has quite rightly moved to give this new tax grab proper scrutiny, especially given that neither industry, retailers, the community, nor even Minister Carr’s own department were consulted about the proposed changes.”

ENDS.