Inquiry into the Tax Laws Amendment (Luxury Car Tax) Bill 2008; A new Tax System (Luxury Car Tax Imposition-General) Amendment Bill 2008; A New Tax System (Luxury Car Tax Imposition-Customs) Amendment Bill 2008; A New Tax System (Luxury Car Tax Imposition-Excise) Amendment Bill 2008
Information about the Inquiry
On 18 June 2008, the Senate referred the Tax Laws Amendment (Luxury Car Tax) Bill 2008, A New Tax System (Luxury Car Tax Imposition—General) Amendment Bill 2008, A New Tax System (Luxury Car Tax Imposition—Customs) Amendment Bill 2008 and A New Tax System (Luxury Car Tax Imposition—Excise) Amendment Bill 2008 to the Senate Standing Committee on Economics for report not before 26 August 2008.
These bills amend the luxury car tax legislation to increase the luxury car tax rate from 25 per cent to 33 per cent from 1 July 2008. The inquiry will examine:
- the incidence of the luxury car tax (LCT) and the effect of the proposed increase in the LCT rate on rural and regional communities, small business families and tourism operators;
- the effect of the LCT increase on the prices of vehicles, the affordability of motor vehicles, the cost of living, and the consumer price index (CPI);
- the expected impact of the increase in the LCT rate on vehicle demand and the likely consequences for government revenues including from the LCT, goods and services tax (GST) and stamp duty;
- the growing incidence of the LCT over time and the adequacy of current arrangements for indexation of the LCT threshold, in comparison with alternative measures including the CPI, average weekly earnings and the increase in the retail price of motor vehicles;
- the rationale for taxing `luxury' cars at a higher rate than other goods and services;
- the effect of the LCT and the proposed increase in the LCT rate on Australian vehicle manufacturers and vehicle importers and distributors;
- the overall taxation burden on ownership and operation of motor vehicles including customs duty, GST, LCT stamp duty and excise on fuel;
- the effect of the LCT and the proposed increase in the LCT rate on the adoption of vehicle safety features and environmental technologies; and
- the extent to which the LCT is viewed as a non-tariff barrier by other car exporting countries.
The
closing date for submissions is
Monday, 7
July 2008.
If you need an extension of time to make a submission, please contact the
committee secretariat.
For further information, contact:
Committee Secretary
Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600
Australia