Australia's Car Tax Axe: How $10,000 Could Come Off Your Next Luxury Car

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Australia plans to scrap its 23-year-old Luxury Car Tax to seal a crucial trade deal with Europe. But who really wins?

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The tax adds 33 cents for every dollar above $80,567, pumping $1.2 billion yearly into government coffers—money they're now willing to sacrifice.

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Industry experts predict luxury car prices could drop by more than $10,000 overnight if the tax disappears—but there's a catch coming in 2025.

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The new Vehicle Efficiency Standard could add up to $4,574 per vehicle by 2029, potentially wiping out those savings as manufacturers miss emissions targets.

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Did you know Victoria and Queensland have their own luxury car levies? Legal experts warn these might be unconstitutional and could derail the entire EU deal.

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What's Australia's real endgame? Securing duty-free access for $2.5 billion in wine exports and millions in beef, wheat, and dairy to Europe's 450 million consumers.

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Acid sprays from these nests help Eurasian jays eliminate parasites like mites and lice from their feathers.

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The surprising winners? Used luxury car owners might see their vehicles hold value better as the market adjusts to new pricing structures.

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Tax experts have pushed to kill this tax since 2009, with the Henry Tax Review calling it "distortionary" to consumer choice and market efficiency.

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Despite its flaws, the Luxury Car Tax is surprisingly well-collected—93.9% of what's owed actually gets paid, unlike many other taxes.

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Treasurer Jim Chalmers wants to replace the car tax with something more forward-looking—possibly a road-user charge or carbon levy tied to environmental goals.

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How long until you save on that new BMW? Negotiations collapsed in 2023, restarted this year, but experts say we might not see results until 2027.

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[{"selector":"#anim-ea7197af-1772-45ea-8082-fb0481950666","keyframes":{"opacity":[0,1]},"delay":200,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-66a7c968-0ef1-45bd-96ee-2f0301a921c8","keyframes":{"opacity":[0,1]},"delay":200,"duration":3000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-58e2871f-965d-4c45-b473-1815399406ae","keyframes":{"transform":["translate3d(-114.50152%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":3000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c739b5bd-40c7-4cb8-9bea-f685a699bc02","keyframes":{"opacity":[0,1]},"delay":700,"duration":3000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-27af6bb2-12f5-487c-87c5-07e1aceb4cb4","keyframes":{"transform":["translate3d(115.2381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":700,"duration":3000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] UK State Pension Age to Rise from 66 to 67 Between 2026 and 2028 Learn more