Tax Loophole for Luxury Utes Costs Australian Taxpayers $250 Million in 2023
July 22, 2024The Australia Institute reported a $250 million revenue loss for Australian taxpayers in 2023 due to a tax loophole.
This loophole exempts large American-style utes, specifically 'full-size 4X4 utes', from the Luxury Car Tax.
These exempt vehicles contribute to road damage, safety concerns, and higher emissions.
The loophole applies to vehicles carrying twice the weight in payload than people, making luxury utes like Ram and Chevrolet SUVs cheaper.
Some utes reportedly avoid over $50,000 in tax due to this exemption.
The Australia Institute recommends ending the exemption to target personal buyers rather than tradies.
The recommendation aims to reduce unnecessary fuel expenses and environmental harm from the popularity of SUVs and utes.
The Institute suggests the government should tax luxury vehicles imposing societal costs and subsidize beneficial items.
Summary based on 3 sources
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Sources
The Guardian • Jul 21, 2024
Luxury ute tax loophole costs Australians $250m a year, researchers sayThe Sydney Morning Herald • Jul 21, 2024
Australia news LIVE: Albanese pays tribute to Biden as he exits presidential race; National housing target unlikely to be metThe West Australian • Jul 21, 2024
Tax breaks on 'big, dumb' utes cost the public $250m