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 Farmers win exemption from luxury car tax hike 

Farmers win exemption from luxury car tax hike

17/09/2008 1:08:00 PM
The Federal Government has agreed to Family First's demand to exempt farmers and tourism operators from its proposed increase to the luxury car tax.

The Government failed to have its legislation passed by the Senate a fortnight ago, with Family First Senator Steve Fielding voting against it on the grounds that it would unfairly hurt businesses dependent on expensive vehicles, such as farm four-wheel drives.

The Government had wanted to increase the luxury car tax from 25pc to 33pc on all vehicles costing more than $57,000, which would have taken in popular rural vehicles such as the Toyota Landcruiser.

"Family First has been able to successfully negotiate with the government and is pleased the government has agreed to concessions worth an estimated $40 million over four years," Sen Fielding said today.

"Family First will now seek the support of the other parties in the Senate.

"Vehicles purchased by farmers and tourism operators are tools of trade.

"Other businesses get full exemptions for their vehicles from the car tax, so farmers and tourism operators should not be slugged with the extra tax.

"They are already struggling with high petrol prices, the impact of the drought and a strong Australian dollar."

The amendments negotiated by Sen Fielding will provide refunds to farmers and tourism operators so they can claim back the extra 8pc car tax from the Tax Office once they have purchased their four-wheel drive vehicle.

The amendments allow claims up to $3000 per year for primary producers and $3000 per vehicle per year for tourism operators.

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Comments


Date: Newest first | Oldest first
You don't have to be a farmer to live in the bush or use roads regularly that wreck normal family cars. Exempting farmers is a start...but for every farmer there would be another three road users in country areas that own 4wd drives that would be classified as luxury vehicles.

We are also talking about family vehicles that are not claimable for farm or business use.

Posted by Alan Mears on 17/09/2008 4:46:08 PM
Re the above comment: potential purchasers should have to prove, by way of evidence of address etc that the purchaser is a bonefide country dweller. Otherwise the sale of these gas-guzzling, dangerous, vehicles must stop all together for city dwellers, the vast majority of whom never venture away from city roads, local schools and shopping centre car parks. There can be no more self-indulgent, arrogant, purchase for these people than an ‘SUV’ and I predict the day will come that these cars and their owners will be regarded as the epitome of environmental and social irresponsibility, as they already are among thinking Australians and environmentalists.
Posted by Diana on 18/09/2008 8:43:33 AM
To Diana (previous post) - you are a bit narrow minded.

These vehicles are available for sale so people will buy them regardless and the luxury car tax applies to sedans as well anyway not just SUVs.

Anyone who tows a caravan or travels at all to country areas is a whole lot safer with an SUV. You have obviously not hit a roo with a normal car.

Also, I have a daughter who was passenger in a car accident in a small car in Perth. Because there is no weight with these, it stopped so suddenly at 40kph that the seatbelt broke her back and caused serious internal injuries, a very common occurrence.

SUVs don't have the deadly acceleration and top speed of many cars today but do have all the safety features.

So before you call people like me arrogant, do some proper research.

There are a few who live in the city and have these vehicles for no particular reason but most have them for safety, room, handling on rough roads, towing ability and longevity.

So thanks to the government for easing the luxury tax burden.

Posted by farmport on 18/09/2008 10:07:42 AM
Farmers generally need to drive on rough roads, but they are not the only ones who use these roads.

Mail carriers, people that work in the bush and stock and station agents and the average joe who works in the bush.

I totally agree with Dianna, but people in the bush can't economically run without a 4wd.

Posted by dusty gal on 18/09/2008 1:33:27 PM
I agree completely with Alan's comments.

Re Diana's comment, note that a modern 4WD diesel is more economical than are standard family sedans.

They also have better visibility than many sedans and are very safe.

Maybe those city dwellers just need a better designed sedan that has the best attributes of the 4WD, without the strictly country bits!

Posted by Spinel on 18/09/2008 5:32:31 PM
Finally some common sense. It must be so embarrasing for farming families showing up at the Kings School or Geelong Grammer in last year's 4WD.
Posted by Joe on 18/09/2008 7:21:17 PM
Joe you are neither funny or original. Just another one-eyed victorian.
Posted by THE FARMER on 18/09/2008 11:27:27 PM

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Q: Do you believe the Rudd Government has a plan for the future development of inland Australia?

Yes
(7.1%)

No
(89.4%)

Undecided
(3.4%)

Total Votes: 757
Poll Date: 14/09/2008

11/12/2008 | Farm lobby groups will decide next week whether the future of farm representation will stay as it is or be broadened to bring in the big end of town.
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