Luxury Tax defeated in Senate!!!!!
 

[url]http://www.thewest.com.au/default.aspx?MenuID=28&ContentID=95973[/url]

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shame the govt didnt come to town on the exemptions to get it through
apparently exemptions were relating to farmers and tourism, but havnt been able to find out exactly what they were talking about yet

Sweet! Even with Sue Boyce's vote, it still wouldnt have gone through. Cant see the point in getting it recommitted this morning!

This is good news. You pay enough taxes to get the money to buy a 'luxury' vehicle over $57k, then to be slugged more tax again...

[quote]Senator Fielding had wanted to exempt farmers and those in the tourism industry who use cars, worth more than the tax threshold of $57,180, as tools of trade.[/quote]

Why only farmers and tourist operators? What defines tools of the trade? What about all the other people who require a vehicle that falls into LCT but aren't in those sectors, isn't that quite harsh to them? Rather than these complex systems our politicians keep introducing to 'help out' it should be one system or none. (Personally I do not see any reason for paying LCT at all as it is just a double dip on tax)

seriously does $57K and up truly represent "luxury cars" ? Maybe ten years ago but not in 2008.

Politicians don't care. We pay for their cars as well

[QUOTE=Kato]This is good news. You pay enough taxes to get the money to buy a 'luxury' vehicle over $57k, then to be slugged more tax again...



Why only farmers and tourist operators? What defines tools of the trade? What about all the other people who require a vehicle that falls into LCT but aren't in those sectors, isn't that quite harsh to them? Rather than these complex systems our politicians keep introducing to 'help out' it should be one system or none. (Personally I do not see any reason for paying LCT at all as it is just a double dip on tax)[/QUOTE]



Baby steps my young padawon!

It won't happen overnight but it will happen!

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

I would say most definately. You can get some really nice cars for below $57k. Essentially a luxury is something you dont need. And any car below $57k is going to be more than enough to meet any persons needs. Saying that, They could probably raise the threshold a little, say $65-70k. But Also, The cost of cars hasnt increased with CPI. WRXs were 45-50k in 1994, and they still cost that. If anything theyre cheaper.

I do agree that those vehicles required directly for work should be exempt though.

But why should you pay LCT at all?

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.

All Australia wants to do is tax anyone who has the incentive to be more than average.

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 :)