Although not affected as much as other brands, Mazda Australia reckons it’s high time the luxury car tax was abolished, but NVES could offset any benefits to the consumer.
Mazda Australia believes it is time to ditch the luxury car tax (LCT), which – in theory – would make a small handful of its own models including the CX-70, CX-80, and CX-90 more affordable.
Speaking to Drive, Mazda Australia boss Vinesh Bhindi said definitively that “it’s time for it to go” when asked about whether the tariff should be scrapped.
“It was bought in for different purpose many, many decades ago,” Bhindi said.
“That landscape has changed, and why should an Australian consumer be penalised?
“Look, I know taxes are hard to modify … but I think it’s time to go, it’s well overdue.
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“Most of our models are do not qualify [for LCT], but it just doesn’t make sense.”
The current LCT threshold is set at $80,567, or $91,387 for ‘fuel-efficient’ vehicles (a claimed combined consumption figure of 3.5 litres per 100km or less), with 33 cents per dollar above the level added to the total price.
Only select variants of the CX-70, CX-80, and CX-90 breach the threshold, but other mainstream brands like Toyota and Nissan have big-ticket models like the LandCruiser and Patrol that clearly exceed figure.
Naturally, premium brands like BMW, Mercedes-Benz, Audi, and Porsche have more models that sit above the LCT threshold, but a report form 2019 showed that Toyota customers are actually paying the tariff.
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The abolishment of LCT has been floated recently, with reports indicating the Albanese government will use it as a bargaining tool with Europe – where some LCT-affected cars are sourced.
Last year, there was an estimated $1.2 billion of revenue brought in from the LCT, but the government is now enforcing the New Vehicle Efficiency Standard (NVES) which will see car makers fined for higher-than-targeted emissions totals.
Some car brands, like Mazda, have indicated price rises across some of its models to offset those fines, potentially eliminating the discount the discontinuation of LCT could bring.
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