The legislation is written differently. There is an automatic increase in the LCT threshold for standard cars but no such condition applies to The Fuel Efficient Vehicle threshold. Without legislative change the standard LCT threshold will rise above the FEV LCT threshold reversing the effect of the benefit.
Both figures are adjusted for inflation, the problem is they use different measures of inflation.
There is less than 0% chance of this happening. With all their rhetoric on hitting the top end of town with higher taxes, why would they remove the LUXURY CAR tax? Shorten will tell you to go and buy a Kona if you want to buy an EV without having to pay the LCT. Labor giving tax break to the rich to buy expensive cars? Never going to happen.
LCT was only ever introduced to stop foreign imports and help the local car industry. Now that they’re shut there’s no excuse for an LCT, especially when Australians one of the few countries that tax electric vehicles rather than supply incentives
Not sure if that was the primary reason. Certainly when Kevin Rudd increased the LCT rate from 25 to 33% it was to raise more revenues.
You can apply all the logic in the world to this argument but it won't change the fact that removing lct while sound policy is bad politics. For it to occur you need a liberal government who is rolling in cash. Bill wants you to buy an ev, but he probably would prefer it can't do 0-100 on 2.4 second!
Lct will be one of the key points that determines how higher end model 3s are received here. Also if we become one of those markets that doesn't get Sr/Sr+ at launch it could be a major factor determining all model 3s on the road over the next year or so. Also it impacts heavily Tesla's ability to sell add ons and ultimately be profitable in this country. If this launch is a flop I hate to think what that means for model 3s in Australia and Tesla cars in general (energy will be fine!)
Someone announced this week that they are going to build chinese designed electric cars in adelaide starting next year.....which means they have an excuse again for the import tax until that company folds
The Australia/EU FTA was supposed to sort this out as the French were against any tariff barriers such as LCT. However it may now be on hold until Brexit is resolved.
Problem is there is no Model 3 in Auserrr…..lets keep it on topic & talk about the Model 3 in Aus please
Isn't LCT and Stamp Duty relevant to pricing of the M3 in Australia?
The moderator seems very tolerant on some of the robust discussions. I’m very confident he called time out correctly on this occasion as well.
