Toyota and its premium marque Lexus have moved again to head-off the impact of Australia’s Luxury Car Tax (LCT) by cutting prices on a number of models to keep them below the newly raised threshold.
Growing in-line with inflation, the LCT threshold rose by $948 last week to $64,312, while the threshold on vehicles listing fuel consumption below 7.0L/100km increased by $151 to $75,526. In both cases, LCT is imposed at a rate of 33 per cent on the amount above the threshold.
Effective from July 1, a number of Toyota’s SUV models, along with the Tarago people-mover, have had their list prices reduced by nearly $300.
Those changes include a $284 reduction on the list price of the entire LandCruiser 200 Series range, along with four Prado models, the all-wheel-drive Kluger Grande, and the Tarago Ultima V6. The 2WD Kluger Grande also benefits from a $267 cut to bring it below the threshold.
As with Toyota, Lexus has reduced list prices on all vehicles in its line-up by the amount affected by the increase in the LCT threshold, effective as of July 1.
Reductions range from $45 to $284, affecting all model lines except for the small CT200h hatch.
2015 Lexus RX 350 F Sport
The announcement brought with it renewed calls from Toyota to abolish the luxury car tax, which was established to in part to protect a local vehicle manufacturing industry that is now winding down.
“This is an inequitable tax because it applies only to vehicles and not to other high-end goods such as luxury boats, jewellery and watches,” Toyota Australia marketing and sales chief Tony Cramb said.
“It is unfair that such a discriminatory tax hits consumers who are already contributing significantly to government coffers through GST, stamp duty and registration fees when buying a new car, as well as hefty taxes on fuel.
“Last year, more than 13,500 new Toyota owners were hit by this inefficient, punitive and poorly designed measure.”
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