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Should Teslas (& EVs) cop luxury car tax?

Discussion in 'Australia' started by Nuclear Fusion, Oct 15, 2020.

  1. Nuclear Fusion

    Nuclear Fusion Active Member

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    If I buy a Chevrolet Silverado or Dodge Ram 1500 for my business, I don’t pay luxury car tax. These are driveaway over $100K
    Do the same with a Model X, with nearly 2.5 ton towing capacity & I cop $20K luxury car tax, despite wanting to do the right thing by the environment
    Ugh. This country & its constituents.
     
    • Like x 1
  2. rohan3au

    rohan3au Member

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    The cars you listed are for carrying goods (Utes), Model X is not, that's the difference. Realistically, LCT needs to be abolished completely. It was brought in to encourage Australians to buy locally built cars (Aus built cars did not attract LCT). Australia now does not build any cars at all, so why is the tax still there... And why doesn't this tax apply to other luxury goods... Boats, jewellery, private planes... etc.
     
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  3. Blue heaven

    Blue heaven Fair Dinkum Tesla

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    No, keep the luxury car tax but raise the threshold to $243,212 for electric vehicles
     
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  4. meloccom

    meloccom Moderator Aus/NZ

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    They should replace this tax with one based on Co2 and it should be applied to light trucks as well.
    Tradies should be encouraged to buy fuel efficient vehicles too.
    I’ve seen too many Dodge Rams And other large utes with empty trays and one person on board.
     
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  5. Tiger

    Tiger Active Member

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    Should be an easy fix, just move to a place where taxes (and cost of living) exist only to a bearable amount. It's (for the considerable part) a free world.
     
  6. Vostok

    Vostok Active Member

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    I think LCT should apply to all luxury goods if LCT, as a concept, is to remain. People who earn in the top 2% often find ways to avoid paying tax or use every trick in the book to minimise it, so LCT is an effective way of clawing some of that back since many of these same people often don’t baulk at, or indeed actively seek out, the purchase of luxury goods in order to display their wealth. Not all of them do, of course, but it is not an uncommon thing.

    In recent year luxury car brands have publicly gushed about how their sales have been skyrocketing etc. Even now during a pandemic (Exhibit A: How the rich are driving up luxury car sales when the economy is in reverse) so clearly LCT is not stopping the wealthy from spending, so governments should take advantage of that.

    I didn’t mind paying the LCT on my Model 3. I thought it entirely fair since it was an extremely extravagant purchase that is way, way beyond the means of a vast number of Australians.

    What would be better in my view, though, is to remove all taxes from purely electric vehicles (and possibly plug-in hybrids) below a certain price-point. Or, alternatively, replace the LCT with a tax on all vehicles in proportion to their tailpipe emissions.
     
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  7. Nuclear Fusion

    Nuclear Fusion Active Member

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    So I can’t have a roof over the goods carrying compartment. Got it.
     
  8. Vostok

    Vostok Active Member

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    THIS!!
     
  9. Nuclear Fusion

    Nuclear Fusion Active Member

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    And their cabins are more luxurious than most people’s lounge rooms
     
  10. Nuclear Fusion

    Nuclear Fusion Active Member

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    Or we could change the government to one that utilises greater levels of logic.
    Unfortunately, 50% of the population or 12 million odd people have an IQ of 99 or less, age adjusted....
     
  11. Blue heaven

    Blue heaven Fair Dinkum Tesla

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    I agree with you Nuke but this is not a site for politics, best we all gently encourage family, friends and work colleagues to move over to EVs and renewables by continuing to purchase such items due to long term financial benefits. They soon follow when it helps their bank balance.
     
  12. paulp

    paulp Active Member

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    Forget the luxury ferrari, buy their shares on the nasdaq (call sign race), make the profit, pay the tax. Then buy an actual tesla and pay the tax. Its the closest I’ll ever get to owning another petrol car.
     
  13. paulp

    paulp Active Member

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    And that 50% think the same about the other 50%.
    If you dont like the government, act and become part of it.
     
  14. Nuclear Fusion

    Nuclear Fusion Active Member

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    Why would I want to become part of the Scientifically Illiterate Party, currently in government?
     
  15. Nuclear Fusion

    Nuclear Fusion Active Member

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    The unfortunate thing about the luxury car tax is effectively treating travelling 300km as a luxury
    To be logically consistent, that’s a lot of cars that should be taxed
    Maybe someone should educate the Party that is founded on the importance of economics what ‘economies of scale’ are
     
  16. ShockOnT

    ShockOnT ⚡️⚡️⚡️⚡️⚡️

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    Actually half the population has an IQ of 100 or less, by definition. The median intelligence is 100.

    As for politics, humans should get out of it. We should just fence off an AI and let it run the country.
     
  17. GrimRe

    GrimRe Member

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    This x1,000,000

    I've posted it before but when you factor in the LCT and FBT 'relief' in having a business owned Ute (i.e. gigantic luxury SUV with an empty covered tray), the cost of owning an EV is practically punitive. We should remove LCT and FBT and replace it with a road usage tax plus an emissions tax. If you drive 15,000KMs per year and emit 7.5 tonnes of c02 (this is not an exaggeration for a Doge RAM), you will pay per c02/km multiplied by your per KM road tax. If you drive a car with zero tailpipe emissions you only pay road tax.

    This may sound ridiculous but I draw comparison to the cigarette industry. We as a society tax consumers to buy cigarettes based on the long term harm they do. This tax still no where near makes up for the increase to our public healthcare system. The same goes for tailpipe emissions. Why are we as a society happy to subsidise tailpipe emissions? Somebody in the future is going to have to pay for the damage it does (i.e. to people's health, the economy, local environment and global climate), why not the person choosing to buy that vehicle?
     
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  18. Brissienew

    Brissienew Member

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    This.
    But some people will no doubt argue that this is a tax on the poor as they cannot afford to buy newer, lower emission cars, they have to travel further to work, and only the rich can afford to drive zero emission cars and live in expensive inner-city areas. At the same time, a Ferrari that is driven for only limited number of km each year will likely to be much cheaper to own.
     
  19. Nuclear Fusion

    Nuclear Fusion Active Member

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    Cool, I’m all for logic. As the saying goes “reality has a progressive bias” :)
     
  20. Vostok

    Vostok Active Member

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    This is a bit off-topic (OK, a lot off-topic), but I’ve read some articles that showed that “bias” is often unconscious, and that even the way software rules or boundary conditions are written can often embed an unconscious bias which then, of course, is perpetuated. And the software engineers or rule-setters don’t even realise they’ve done it.

    The fact that software and AI development is an overwhelmingly male profession is of itself a red flag because it omits the life experiences, thinking and mindset of half the population.

    There were some great examples provided in the articles I read which were really eye opening. I should see if I can find them.
     

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