Motoring bodies oppose new luxury car levy

Queensland’s peak bodies representing drivers and the automotive industry have opposed the introduction of a new stamp duty charge on luxury cars on 1 July.

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The new charge, which added an extra two percent stamp duty on cars valued more than $100,000 would hurt RACQ and Motor Trades Association of Queensland (MTA Queensland) members.

MTA Queensland Group CEO Brett Dale said the additional tax was extremely unfair to both motorists and business.

“This will result in two tax hits on consumers who already pay Luxury Car Tax. The tax is simply a revenue raiser with no direct return to road or transport infrastructure improvements,” Dr Dale said.

“MTA Queensland’s members strongly oppose this nonsense tax.

“It will not only affect buyers of high-end cars like BMWs, Mercedes and Porsches, but also impacts on larger families who need safe, robust people movers or individuals who are committed to buying cars with high safety standards.

“Most electric vehicles are currently in the high price range as there are presently no government incentives to increase their uptake, so these environmentally friendly cars are disincentivised further.

“MTA Queensland is at a loss to understand this short-sighted legislation that will affect Queensland vehicle buyers and businesses. The tax is likely to push shrewd buyers to take their business south of the border which is a bad result for business and our economy.”

RACQ spokesperson Rebecca Michael said Queensland drivers already paid their fair share and should not be used as ‘cash cows’ to fill government coffers.

“We don’t support this new charge on motorists who already pay the Federal Government’s Luxury Car Tax – it’s double dipping,” Dr Michael said.

“Over the last four years we’ve also seen car rego and licence renewal costs increase by nearly 15 percent and this isn’t fair on drivers.

“These extra costs all add up and it puts Queenslanders’ budgets under more stress.”

 

Media inquiries: MTA Queensland Marketing & Communications Manager Lysa Durgandzic 0428 510 163; RACQ Media Advisor Nelson Savanh 0427 949 358.