The Motor Trades Association of Australia (MTAA) strongly supports the Australian Government's consideration of abolishing the $5.2 billion Luxury Car Tax (LCT) as part of negotiations for a free trade agreement with the European Union.

The proposed removal of the 33% tax on vehicles above the thresholds of $91,387 for fuel-efficient vehicles and $80,567 for other vehicles would benefit Australian consumers and automotive businesses significantly.

“The luxury car tax has long been outdated and inefficient, unfairly impacting Australian motorists and businesses,” said Rod Camm, Interim Executive Director of the MTAA.
“Its removal would help reduce vehicle costs for consumers whilst supporting thousands of automotive businesses across the country during a critical period of industry transformation.”

The MTAA believes abolishing the LCT would deliver multiple benefits to the Australian automotive sector, including:

  • Increased affordability of newer, safer, and more environmentally friendly vehicles
  • Enhanced competitiveness for Australian automotive retailers
  • Expanded consumer choice in the Australian market
  • Support for employment across sales, service, repair, and parts sectors

“The potential removal of this tax represents a significant opportunity to modernise Australia's automotive taxation framework at a time when our industry is undergoing unprecedented technological and structural change,” Mr Camm said.

The MTAA looks forward to continued collaboration with the government as the industry navigates this transition period, particularly regarding electric vehicle adoption and supporting infrastructure development.

“We stand ready to work constructively with the Albanese Government to ensure that reforms like the abolition of the luxury car tax deliver maximum benefit to Australian consumers and businesses whilst supporting the industry's sustainable future,” added Mr Camm.

ENDS

Media Contact

Andrew Molloy
Manager: Marketing, Media & Communications
Victorian Automotive Chamber of Commerce
M: 0457 188 375
E: amolloy@vacc.com.au

About MTAA

The Motor Trades Association of Australia (MTAA) is the peak body representing the interests of the automotive retail sector across the nation. Through proactive engagement, MTAA helps shape sound public policy on issues that affect the retail motor trades, small businesses, and consumers.

MTAA’s member associations include:

  • Motor Traders’ Association of New South Wales
  • Victorian and Tasmanian Automobile Chamber of Commerce
  • Motor Trade Association of South Australia and Northern Territory
  • Motor Trade Association of Western Australia
  • Motor Trades Association of Queensland

At the national level, MTAA acts as a unified voice, representing the interests of the automotive sector to the federal government and influencing key policy decisions. Its work includes identifying and addressing issues impacting the sector and advocating for the needs of automotive businesses through ongoing discussions with government.

You may also like...

View All
No items found.