VACC members have been advised that the Victorian State Budget for 2019/20 was released Monday, 27 May 2019 and contained key measures, including the introduction of two super-luxury motor vehicle duty thresholds – impacting members and consumers.
Many LMCTs have contacted VACC with queries and concerns about the new super-luxury duty and as a result, VACC is calling for member input to help arrive at better outcomes for LMCTs.
How can members help? Complete this survey. Survey results will assist VACC to better inform the State Government of the unintended outcomes of the duty thresholds. VACC seeks evidence-based arguments, including examples of where members have lost a confirmed deal because of the new super-luxury duty. The State Government's attention must be drawn to the unintended outcomes of the thresholds.
A special meeting of LMCTs impacted by the thresholds will be held Tuesday, 11 June 2019, with a senior government representative in attendance. VACC members can register their interest in attending this meeting within the survey (Question 11).
What other action is VACC taking? VACC is communicating twice daily at the highest levels within the Victorian State Government to help deliver a more equitable trading environment for members.
As a matter of priority, and amongst other things, VACC is seeking an exemption from the new super-luxury duty for dealers, to enable dealers to honour pre-existing orders to consumers at the price negotiated before the July 1 super-luxury duty commencement date for vehicles delivered and registered after 30 June 2019.
Motor vehicle duty – luxury vehicles
From 1 July 2019, motor vehicle duty for used cars valued above the luxury threshold will be charged at $10.40 per $200 of market value.
From 1 July 2019, two new super-luxury thresholds will be introduced. One is for cars valued between $100,001 and $150,000 that will be charged duty of $14.00 per $200 of market value. The second is for cars valued above $150,001 that will be charged duty of $18.00 per $200 of market value.
These new taxes will be on top of the already existing Luxury Car Tax rate for vehicles above $66,331.
All low emission cars (with CO2 emissions less than 120g/km) and cars owned by primary producers used in the business of primary production and valued above the luxury car threshold will pay a concessionary duty rate of $8.40 per $200 of market value.
For more information:
Michael McKenna MBA
Industry Policy Advisor
P: 03 9829 1280 | E: email@example.com