Quote:
Originally Posted by Dr Terry
The LCT was never meant to protect the local industry. It was meant to be a revenue stream by making buyers of 'expensive' cars pay extra.
The cut-off was just above the price of our most expensive Holdens & Fords, that was the Caprice & the LTD, so it was never applied to the local product.
We still have the LCT because it's a good earner for the Govt. as there are plenty of 'rich' people spending money on 'expensive' cars.
Dr Terry
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Correct, the LCT was intended as a second tier tax above GST as a replacement for the
former wholesale sales tax and originally it was 25% but Labor's treasurer increased it to
33% in 2008 to raise $670 million keeping his budget balanced.
This is governments meddling in what should be a free market, they should get rid of it
and just take the GST, sales would actually increase and they'd get just as much tax from
more buyers purchasing higher priced vehicles.