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Australia Eyes Luxury Car Tax Hike for EU Trade Deal
5 Mar
Summary
- Australia may increase luxury car tax threshold to over $100,000.
- The change is a concession for European car manufacturers.
- This is part of securing a free trade deal with the European Union.
Australia is considering significant changes to its luxury car tax (LCT) as part of concessions aimed at finalizing a free trade agreement with the European Union. Officials indicate that the current LCT threshold of $80,000 may be raised to at least $100,000.
This potential increase is a key concession being offered to European car manufacturers, including prominent brands such as BMW and Mercedes-Benz. The LCT currently applies a 33% rate to cars valued above the specified threshold.
The Australian government has acknowledged its willingness to include the LCT thresholds in the ongoing free trade deal discussions. This development comes amid reports of substantial progress in negotiations, with a visit by the European Commission president to Australia possibly being announced shortly.
