Article 6PCDH Luxury ute tax loophole costs Australians $250m a year, researchers say

Luxury ute tax loophole costs Australians $250m a year, researchers say

by
Elias Visontay Transport and urban affairs reporte
from World news | The Guardian on (#6PCDH)

The Australia Institute says tax exemption on commercial vehicles' with no testing requirement is incentivising people to buy utes instead of EVs

A loophole in Australia's tax law is effectively subsidising the price of luxury utes such as Ram and Chevrolet SUVs, costing taxpayers more than $250m a year in foregone revenue, an analysis has found.

The research from the Australia Institute centres on the Luxury Car Tax (LCT) - introduced in 2000 for imported cars partly to protect the domestic industry that existed at the time - and an exemption that applies to certain utes.

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