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:p:p

Not to mention if you have a “commercial vehicle” (I.e luxury Ute) there is no LCT or FBT no matter how luxurious or polluting it is.

LCT and FBT should be abolished and a simple road usage tax created that is a function of how fuel efficient your car is and how much you drive.

7L/100KM x 15,000 KM = $10,500 yearly tax for example.

If your car is less than say 1L/100KM you only pay a function of much you drive so the same 15,000KM would be $150 yearly tax (only half joking)
There are circumstances that FBT applies to utes. Its not as black and white as you suggest.
Do you really think its right that an EV pays effectively no tax with your formula?
 
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There are circumstances that FBT applies to utes. Its not as black and white as you suggest.
Do you really think its right that an EV pays effectively no tax with your formula?

The whole Ute industry is predicated on the fact they don’t have to pay FBT/LCT. Why do you think there are so many on the road? I’m sure there are cases whereby the net carrying capacity is under 1 tonne, but all a business owner has to prove is that the primary intended use case is not a passenger vehicle. This can be a simple a sales brochure showing the vehicle in a commercial setting.

I do believe it’s fair that carbon emissions are priced into the TCO of a vehicle. Maybe not to the extremes I was half joking about however consider this fact... I can buy a RAM 1500 with a V8 ICE and because it’s carrying capacity is 1 tonne, I not only don’t pay FBT/LCT but all of my vehicle related expenses are a business write off too (petrol, rego, deprecation etc). I don’t have to pay a cent for the fact that the RAM has a fuel efficiency of 25L/100KM and therefore over its lifetime emits hundreds of kg of CO2. In fact it’s far better financially to buy an unsafe horrendously polluting ute than it is an EV and that’s only because of the government incentives in ICE ownership. All that’s required is to allow businesses to write off an EV to the same extent they do a RAM 1500 and the market will take care of EV adoption itself.
 
If your car is less than the average consumption (recalculated every year or two as vehicles become more efficient overall) they should be paying you.

haha I don’t think I would go that far. EVs still need to pay for road maintenance. If you want to drive a polluting car go right ahead but it should cost you something as sooner or later somebody is going to have to pay to remove the effects of those emissions.
 
The whole Ute industry is predicated on the fact they don’t have to pay FBT/LCT. Why do you think there are so many on the road? I’m sure there are cases whereby the net carrying capacity is under 1 tonne, but all a business owner has to prove is that the primary intended use case is not a passenger vehicle. This can be a simple a sales brochure showing the vehicle in a commercial setting.

I do believe it’s fair that carbon emissions are priced into the TCO of a vehicle. Maybe not to the extremes I was half joking about however consider this fact... I can buy a RAM 1500 with a V8 ICE and because it’s carrying capacity is 1 tonne, I not only don’t pay FBT/LCT but all of my vehicle related expenses are a business write off too (petrol, rego, deprecation etc). I don’t have to pay a cent for the fact that the RAM has a fuel efficiency of 25L/100KM and therefore over its lifetime emits hundreds of kg of CO2. In fact it’s far better financially to buy an unsafe horrendously polluting ute than it is an EV and that’s only because of the government incentives in ICE ownership. All that’s required is to allow businesses to write off an EV to the same extent they do a RAM 1500 and the market will take care of EV adoption itself.
Like I said and your first paragraph confirms, there are circumstances that fbt can apply to utes, and don’t forget your log book, which might show otherwise compared to a sales brochure. As I’m not into fraud or tax evasion my log book is correctly filled out.
 
The only time I used my Model S for business was to go to Canberra for training in 2015. When I went to claim the expense my accountant asked me what was the cubic capacity of my car’s engine. In the end he rang the ATO and they said it was not claimable on an EV because there was no rate for a car with zero cubic capacity but that they would be charging the rules for the next Tax year. So things have improved a bit.
Biggest irony was that the training I was involved in was to support a contract with, you guessed it, the ATO. :confused:
 
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