Car tax finally passes the senate with plenty of amendments

The Rudd Government’s luxury car tax has finally passed the senate after weeks of debate, lifting the tax on cars worth more than $57,180 from 25% to 33%.

The Rudd Government’s luxury car tax has finally passed the senate after weeks of debate, lifting the tax on cars worth more than $57,180 from 25% to 33%.

Family First senator Steve Fielding voted to defeat the bill earlier this month but has since worked with the government a deal to exempt primary producers and tourist operators from increase.

“The amendments negotiated with the Government provide refunds to farmers and tourism operators so they can claim back the extra 8% car tax from the Tax Office once they have purchased their four-wheel-drive vehicle,” Senator Fielding says.

An amendment has also been attached by the Greens exempting fuel-efficient vehicles from the tax. Cars valued up to $75,000 which use no more than seven litres of fuel per 100 kilometres are exempt.

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• Green groups attack luxury car tax
• Car dealers reeling from luxury car tax increase