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.