ns buying a luxury car will have to pay a higher rate of tax unless it’s very fuel efficient – which means SUV drivers are in particularly danger.
Treasury’s mid-year update revealed cars selling for more than $89,332 would attract the luxury car tax unless the vehicle used less than 3.5 litres for every 100km.
The existing rules see fuel-efficient luxury cars escape the 33 per cent tax if a car uses less than seven litres per 100km.
But Labor is now tightening the definition of a fuel-efficient luxury car in a bid to raise an extra $330million in 2023-24.
The Mid-Year Economic and Fiscal Outlook forecasting the luxury car tax raising $1.2billion this financial year, compared with a forecast of $870million made in the May Budget.
ns buying a luxury car will have to pay a higher rate of tax unless it’s very fuel efficient (pictured is a Land Rover Defender)