Luxury Cars Get Better Value with New Tax
Tax changes on luxury cars implemented by the Australian federal government may actually be beneficially to the consumer. Most cars are either thinking about discounts or additional value to their models.
Here’s the gist:
- Mercedes-Benz, Porsche, Volvo and Infiniti have each committed to lowering prices by $400 to $500 in line with changes to the luxury car tax threshold, which increased by $1568 to $61,884 from July 1.
- The 33 per cent tax applies to every dollar over $61,884 on luxury cars that use more than 7.0L/100km of fuel.
- More efficient vehicles that use less than 7.0L/100km are subject to the luxury car tax threshold of $75,375.
- The result is that dozens of luxury cars that are not more frugal hybrid or diesel models are now $500 cheaper.