Senate Committee hearing on Envy Tax due Tuesday 26th August

[MikeVictor]

Anyone want to bet on the outcome?

For those living under a rock, there's a Senate committee report to discuss the proposed hike to the Luxury Car Tax from 25% to 33% of the amount above the threshold.

It's supposed to cover off on the following:
1. the incidence of the luxury car tax (LCT) and the effect of the proposed increase in the LCT rate on rural and regional communities, small business families and tourism operators;
2. the effect of the LCT increase on the prices of vehicles, the affordability of motor vehicles, the cost of living, and the consumer price index (CPI);
3. the expected impact of the increase in the LCT rate on vehicle demand and the likely consequences for government revenues including from the LCT, goods and services tax (GST) and stamp duty; 4. the growing incidence of the LCT over time and the adequacy of current arrangements for indexation of the LCT threshold, in comparison with alternative measures including the CPI, average weekly earnings and the increase in the retail price of motor vehicles; 5. the rationale for taxing `luxury' cars at a higher rate than other goods and services;
6. the effect of the LCT and the proposed increase in the LCT rate on Australian vehicle manufacturers and vehicle importers and distributors; 7. the overall taxation burden on ownership and operation of motor vehicles including customs duty, GST, LCT stamp duty and excise on fuel;
8. the effect of the LCT and the proposed increase in the LCT rate on the adoption of vehicle safety features and environmental technologies; and
9. the extent to which the LCT is viewed as a non-tariff barrier by other car exporting countries.

The report is due tomorrow.

[ExMX5]

I wouldn't mind an 8% discount!

Import tax is already silly...

[Alext]

When do we know the final outcome? I ask because my car is due late next month and would rather not have to pay the LCT increase naturally.

[Zuzu]

I read today the Greens would be apposing the proposed increase in LCT.
They want it ammended to be enforced only on cars that are gas guzzlers over the thresh hold.

[cozza]

There's no way the Government are gonna hand back the thousands, possibly hundreds of thousands of dollars they reaped in LCT in June. June was the biggest month on record for BMW Australia. Audi, Mercedes and Lexus also had huge months. They've already spent it. Bastards.

[Timbo]

My guess is that the liberals cave and join Mr Rudd in pushing this through. They'll take their fight up with the alco pops.

I don't think they're going to have to hand anything back pre June... and they wouldn't have collected 33% from any dealers yet... the dealers who are collecting this would be holding this themselves until it's through and they have to backpay.

[Alext]

So it'll be retrospective then?

[MikeVictor]

If it does go through it'll be retrospective to July 1 2008.

My contract for the 135i actually stipulates that I have to pay the increase.

[ExMX5]

It looks like the coalition, the greens and 2 of 3 independants will be blocking it.

[harpoon]

bless them

[MikeVictor]

I believe this might be the exception that proves the rule for in the case of Family First, because I still won't take back all the vicious, nasty things I say about them


update 2.38pm- I've been searching all afternoon for an update on any outcomes here and still nada

[Yep 135]

Cool. Stop the gov from thinking they can just tax the shit out of us all any time they want without thinking things through properly. maybe they should see how they can 'save' on spending. Look at the Bureaucracy gee that could be trimmed. to many jobs for the boys around here.

[Timbo]

I don't think the coalition will block it.... let's hope they do though!

[Alext]

I cant remember how much extra the LCT increase added to the cost of the car. But whatever it is, better in our pockets than the govt!

[MikeVictor]

Originally Posted by Alext

I cant remember how much extra the LCT increase added to the cost of the car. But whatever it is, better in our pockets than the govt!

It's currently 25% of the amount above $57,180 incl. accessories etc fitted at time of delivery.

[ExMX5]

http://www.theaustralian.news.com.au...013871,00.html

No Decision today it seems, but it does look promising - the greens hate LCT and the independants aren't impressed, the coalition seems to hate the tax package period so I'd go so far as to say 50/50 chance either way...

[Alext]

After some quick calculations using an online calculator I estimate one could save around $700-800 if this bill doesnt get passed. That's a solid saving.

[TimMc]

Originally Posted by Alext

After some quick calculations using an online calculator I estimate one could save around $700-800 if this bill doesnt get passed. That's a solid saving.

I think the 8% increase added ~$1300 to the price of my ~$80K 135.

[WAY]

I don't mind if they introduce the LCT increase, as long as they cut the top tax rate to 20%. How's that for a deal Mr Treasurer?

[amk2912]

Originally Posted by WAY

I don't mind if they introduce the LCT increase, as long as they cut the top tax rate to 20%. How's that for a deal Mr Treasurer?

You're dreaming.

There's no incentive to earn more or employ more people to generate more income. Every year is a double edged sword for me - smart business strategies etc mean more nett profit which in turn results in more tax. Still, better than being employed or on the bones of your ass.

[Alpine*]

Originally Posted by amk2912

You're dreaming.

There's no incentive to earn more or employ more people to generate more income. Every year is a double edged sword for me - smart business strategies etc mean more nett profit which in turn results in more tax. Still, better than being employed or on the bones of your ass.

Had a wife ONCE who used to winge that she never got a tax return, I used to tell her "if you don't earn it darlin you can't claim it!"

Bottom line, the more tax you pay (aside from any dodgey stuff of course) the more money you must have earnt. I still like WAYs idea though, or worst case lift the maximum TAX threshold further, well over the $200k mark

[MikeVictor]

Originally Posted by AlpineM3E92

Had a wife ONCE who used to winge that she never got a tax return, I used to tell her "if you don't earn it darlin you can't claim it!"

Bottom line, the more tax you pay (aside from any dodgey stuff of course) the more money you must have earnt. I still like WAYs idea though, or worst case lift the maximum TAX threshold further, well over the $200k mark

I've noticed that the more I earn the more it costs to prepare my tax return as things become more complex too....

Guess I'll have to earn more to pay for more... why is there no snake eating itself smilie?