Audi says luxury car tax in Australia is unfair

Audi is not too happy about the luxury car tax applied in Australia on high-end automobiles. Introduced in the mid-2000, the LCT is a significant 25% tax applied on any new car that costs more than $57,180. The tax eventually rose to 33% for vehicles with a price tag of $63,184 or $75,375 in the case of the models that have a fuel consumption of less than 7 liters / 100 km. The Australian government is making approximately $500 million per year thanks to this tax, but as you would imagine, premium automakers are not big fans of it.

The LCT was originally implemented to support local automakers but since most of them are almost gone, many argue the tax’s only objective now is to make money for the government. To give you an example, the RS7 in Victoria costs $200,434.00 MSRP, but the luxury car tax adds $42,512.10 while the dealer delivery charge is another $4,457.00. There’s also the state government total registration ($806.60) and the state government stamp duty ($12,875.20), so in the end the buyer pays a whopping $261,084.90.

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As you would imagine, it’s not just Audi that is against the luxury car tax as Mercedes-Benz has already expressed it is unfair to have the LCT, but without any luck so far.

Adrian Padeanu

Long-time fan of the fabled Four Rings.