Treasurer Josh Frydenberg refuses to stop luxury car tax despite General Motors axing Holden in 2021
How $ 2 billion of your taxes failed to save Holden because it has been revealed that Australians are still being punished for buying luxury cars
- Treasurer Josh Frydenberg refuses to abolish the controversial tax on luxury cars
- It starts with $ 67,525, with every dollar above the threshold paying 33 percent tax
- The Australian taxpayer Alliance said tax was unnecessary without a car industry
- General Motors announced this week that it would kill Holden after 72 years in 2021
Treasurer Josh Frydenberg refuses to scrap the controversial tax on luxury cars despite Holden’s imminent death.
Anyone who buys a fancy car with a value of more than $ 67,525 must pay a 33 percent surcharge for every dollar above that threshold.
The luxury car is here to stay, although Australia has not made cars for more than two years.
Mr. Frydenberg refuses to levy the tax two days after General Motors announced it would kill the Holden name from 2021, ending 72 years of car history.
“The government has no plans to gradually abolish the tax on luxury cars,” the treasurer said to Daily Mail Australia on Wednesday.
Treasurer Josh Frydenberg refuses to scrap the controversial tax on luxury cars despite Holden’s imminent death. Pictured is the last Holden Commodore made in Australia in October 2017
The Australian Taxpayers Alliance, a libertarian group, said the tax could no longer be justified without a local auto industry.
“It is time to drive the tax on luxury cars from Australia,” said Group Policy Director Emilie Dye.
“Holden has reached the end of his road and makes an unfair tax useless.”
When the luxury car tax was introduced in July 2000, replacing existing wholesale taxes, Australia was home to four car manufacturers: Holden, Ford, Toyota and Mitsubishi.
The following 12 years thereafter, Holden received $ 2.2 billion in taxpayer grants to make his last Australian car in October 2017.
A red Commodore manufactured in Adelaide was also the last car to roll off an Australian production line – an end to a tradition that began with Holden’s first car in November 1948.
Anyone who buys a fancy car with a value of more than $ 67,525 must pay a 33 percent surcharge for every dollar above that threshold. Shown is a Mercedes-Benz C-class that must pay the tax
Victorian liberal senator Sarah Henderson, whose home state made Fords and Toyotas, said that Australia should get “good value for the dollar” from production subsidies.
Mr. Frydenberg (photo) refuses to levy the tax, two days after General Motors announced it would kill the Holden name from 2021, ending 72 years of car history
“Holden has acted fairly disrespectfully towards the government, the Australian people, including its own employees,” she said on a Sydney Institute forum on Tuesday night.
GM’s decision to kill the Holden brand leaves 600 Australians looking for work.
Holden’s US parent company has vowed to honor existing warranties and spare parts obligations for the coming decade and will employ 200 people for that purpose.
Ms. Dye said the government relied on luxury car tax revenue and linked it to the $ 100 million sports competitions, with 684 grants going to mainly marginal seats.
“It looks like Frydenburg doesn’t want to lose part of the government revenue he could spend on supporting his favorite sports teams,” she said.
Former sports minister Bridget McKenzie resigned earlier this month from the ministry and as deputy leader of the national service after the Audit Office criticized her for ignoring the advice of Sport Australia, a government agency.