[QUOTE=spotydog]Cool - hopefully an 8% refund coming my way!

Kato - give the dude earning 200k and paying 100k tax my number, he needs a new Accountant :)[/QUOTE]
Negative gearing and quick solves that issue

[QUOTE=spotydog]Cool - hopefully an 8% refund coming my way!

Kato - give the dude earning 200k and paying 100k tax my number, he needs a new Accountant :)[/QUOTE]

lol :D

[QUOTE=American Dave]seriously does $57K and up truly represent "luxury cars" ? Maybe ten years ago but not in 2008.[/QUOTE]

yeh exactly, an STi/Typhoon/Clubby sits above that mark and is nowhere near luxury..

IMO LCT is just another form of economic protection to protect the inefficient domestic manufacturers against much better imports (merc-beemer-audi etc) that would otherwise have a similar price, problem is nowadays even the locals are costing more than the threshold !!

[QUOTE=spotydog]Kato - give the dude earning 200k and paying 100k tax my number, he needs a new Accountant :)[/QUOTE]

Hah yeah, I was using very big generalisations :D But the point is still the same.

I know - tongue in cheek dig.

I may be wrong but the only reason for buying a luxury vehicle in these circumstances would be for work, therefore all costs are tax deductable including depreciation which is usually huge on luxury vehicles.
A mate of mine usually buys a new BMW every 2 yrs as a company car, sells it off to his mates cheap "wink wink" then claims a massive loss & pays much less tax on his huge wage.
I think the reason for the luxury tax may be to discourage people from doing this.

[QUOTE=Pimpreza]I may be wrong but the only reason for buying a luxury vehicle in these circumstances would be for work, therefore all costs are tax deductable including depreciation which is usually huge on luxury vehicles.
A mate of mine usually buys a new BMW every 2 yrs as a company car, sells it off to his mates cheap "wink wink" then claims a massive loss & pays much less tax on his huge wage.
I think the reason for the luxury tax may be to discourage people from doing this.[/QUOTE]

You can only depreciate up to the luxury car threshold (i.e. $57k). Also as a work vehicle you will have to pay FBT on any private use etc etc etc. It is not big win as people make out.

[QUOTE=Kato]You can only depreciate up to the luxury car threshold (i.e. $57k). Also as a work vehicle you will have to pay FBT on any private use etc etc etc. It is not big win as people make out.[/QUOTE]

agreed 100% it's a tax break but it aint huge

[QUOTE=Kato][B]But why should you pay LCT at all?[/B]

To purchase a vehicle of say $100k, you have had to earn close to $200k and pay nearly $100k in tax (very very round figures here). Then you purchase the vehicle and have to pay another 25% LCT because you have chosen that vehicle.

[B]All Australia wants to do is tax anyone who has the incentive to be more than average.[/B][/QUOTE]

nail + head = hit.

It shouldn't be up to the average aussie worker to pay more for better imported cars simply because the australian auto industry is not up to scratch. Its not our fault that the domestics cannot compete so why should a lot of the desirable cars on the market be priced out of the average aussies wage.

VE Commodore is a prime example. They keep going on about how its a world class car yada yada because its being sold in the states under Pontiac.
Never mind the $50k VE here is being sold for just under $30k over there, otherwise it would not have a chance.
$50k over there buys you a new M3, which the VE is simply no match for.

[/[/B]QUOTE]
VE Commodore is a prime example. They keep going on about how its a world class car yada yada because its being sold in the states under Pontiac.
Never mind the $50k VE here is being sold for just under $30k over there, otherwise it would not have a chance.
$50k over there buys you a new M3, which the VE is simply no match for.[/QUOTE]

Oh god please don't get me started on this issue.....we pay thru the arse for cars full stop!