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Black day for Australia's automotive industry.

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Senator the Hon Eric Abetz Deputy Leader of the Opposition in the Senate Shadow Minister for Innovation, Industry, Science and Research

The passing into law of the dog's breakfast which has become the Luxury Car Tax surcharge is a black day for Australia's automotive industry.

This tax slug will cost Australian car industry jobs.

Incredibly, the Government has made the situation worse by putting together a series of contradictory amendments that had the result of exempting European made cars from not only the tax increase, but the entire tax, while slugging Australian made cars with the extra eight percent tax.

As a result of this new law, the following cars:

The Audi A4, Alfa Romeo, Sportswagon, the BMW 3 series, the BMW X3, Jaguar X-Type, Mercedes-Benz C Class, the SAAB Sports sedan, the SAAB SportCombi and the BMW 5 series

Will all be, on average, some $3,500 cheaper;

While not a single Australian made car will be cheaper - in fact, they will be, on average, $1,000 more expensive!

It is incredible that a Government who pretends to support the Australian car industry would wilfully introduce a tax which advantages European imports over Australian made cars.

The Rudd Government can no longer claim they have the interests of the Australian automotive industry at heart.