The 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.