Will Kia Stinger really flog an SS?

[thestig]

LCT had nothing to do with protecting the Australian Car Industry. It came about during the transition to GST. Pre 2001 'luxury' cars over the value of $37,000 atracted sales tax of 45% (compared to 22% for regular non luxury cars). So govco wouldn't miss out on too much money they imposed the LCT of 25% for all cars over $55k as WST was abolished as part of the GST legislation.

These days the rate has gone up to 33% and is applied to all cars over approx $65k.

Your figures are correct, however the Australian financial review appears to disagree on the reasoning behind it.

Quote, "If sense prevails, when 2017 rolls around that tax – applied at 33 per cent on vehicles above the hardly luxurious price of $68,184 – will go away as the last of the Australian car manufacturers it was designed to protect close their doors."

Full article here

 

[Forg]

That's just because whoever owns the Fin Review has vested interests in something involved in dropping the LCT; not really related to any actual facts.

 

[426Cuda]

Your figures are correct, however the Australian financial review appears to disagree on the reasoning behind it.

Quote, "If sense prevails, when 2017 rolls around that tax – applied at 33 per cent on vehicles above the hardly luxurious price of $68,184 – will go away as the last of the Australian car manufacturers it was designed to protect close their doors."

Full article here

Then, what it's purported to be by the AFR is incorrect. It was to replace WST. How can a tax levied on expensive cars, made both here and o/s protect our industry?
It was nothing more than a new tax, to replace WST. This I know, from my post grad studies in the New Tax System 1999. For which I was also engaged, by the Institute of Chartered Accountants, at that time to present to Chartered Accountants around NSW, as part of a New Tax System training roadshow.

 

[Zeke Topanaga]

The Australian car industry has been on life support for decades. Political pressures and government subsidies have allowed it to exist well past its natural lifespan. In an increasingly globalised world it has outlived its use. In evolutionary terms it is no longer worthy of existence.

It really is time someone pulled the plug.

Mark its passing by celebrating the history of achievements past. But do not fool yourself into thinking it has a future.

As for car salesman X or service tech Y, the choice is simple, they will have to adapt or die. It is nothing new, it has being going on since the beginning of time.

Fact is with Aussie Car manufacturing such never could exist in the first place.
Right from when they started to make the FX Holden that's when Tariffs came into making our Aussie made cars the real big deal, it was always there to help Aussie job growth, not only cars but all the other spinoffs that comes from it all.
We could never compete in the first place at all, never never never ! it was about jobs and creating an industry, the fact is that Australia was a backwards **** hole and no one who wanted a future for there family would of wanted to come here back in them days.
This gave hope for bringing a skill class of people we needed, it was calling out that we have a future. It was helping in bring people in with skills for a future.
The Government was why it existed in the first place totally.

Australia has given up ! it could exist if we were a smart Nation but we are not smart at all, just look all around us, BS after BS you can't run a business nowadays for all the crap that try's to strangle you every way you turn like weeds.
They are trying to destroy our Nation just look at USA it's the same crap, a Nation that has everything is being run into the ground, it's Roo Ted, and that does not just happen, it's all planed and orchestrated no one could be so stupid to let such happen.
All are that far in hock that when the crash comes we are fooked and it's stickes out like dogs balls that it's all been orchestrated.
Governments are there to serve the people who voted them in first and foremost and what do we see nowadays, they role out the red carpet for people who are not even citizens and the parasites given a free run and then shaft all who work or have lost there job due to being shafted by such queer weirdo bastards.
It's all about the NWO ! enslavement of one garbage dump in the desert ruling the whole world, and it's one nation that no one is allowed to or fears question it's intentions, no nation will have any power as idolising the political correctness god will see to that.

 

[Forg]

Zeke, I'm not onboard with any of that being actually planned.
Yes the end-result is happening, but it's incompetence & greed & basically capitalism that's at the root of it. Most politicians are, within the bounds of keeping their jobs, do as good a job as they can do; but the populace expect too much & are too greedy, resources are finite, political decisions get made on the basis of greed (and fear that allowing anything to go backwards slightly means going backwards HEAPS because that's happened before); as a result everyone loses.

I think I'm going to live past the point where capitalism collapses & it becomes somewhat apocalyptic; but it's going to happen.

In the meanwhile is anyone else getting the animated-gif Jockey ad with that chick in the middle of Zeke's post? Ye Gods!

 

[commodore665]

Just to get things back on track hopefully GM will have something up their sleeves to answer the Kia , which I still think is a nice looking car , but brand snobbery may the reason why it has its haters .

 

[426Cuda]

Zeke, I'm not onboard with any of that being actually planned.
Yes the end-result is happening, but it's incompetence & greed & basically capitalism that's at the root of it. Most politicians are, within the bounds of keeping their jobs, do as good a job as they can do; but the populace expect too much & are too greedy, resources are finite, political decisions get made on the basis of greed (and fear that allowing anything to go backwards slightly means going backwards HEAPS because that's happened before); as a result everyone loses.

I think I'm going to live past the point where capitalism collapses & it becomes somewhat apocalyptic; but it's going to happen.

In the meanwhile is anyone else getting the animated-gif Jockey ad with that chick in the middle of Zeke's post? Ye Gods!

Haha. Yeah all a bit too conspiracy theorist to me too Zeke. But you make a few reasoble points:
1. It could (& should) have been saved;
2. It's about more than building cars;
3. It would have been worth it.
4. Successive gumbyments have botched it. Oh no I've contracted Forgalism!
PS: What chick?????

 

[426Cuda]

Just to get things back on track hopefully GM will have something up their sleeves to answer the Kia , which I still think is a nice looking car , but brand snobbery may the reason why it has its haters .

I don't think it's brand snobbery in our case. We're lowly Holden lovers afterall!

 

[KiwiSSVR-LMF]

The gap car between our V8's and us all driving a Tesla. There will be many more. An internal combustion engine will become a novelty for our kids like steam engines are now. I cant imagine kids rushing to see a turbo Kia when there is a lumpy V8 at the show.

 

[Reaper]

Your figures are correct, however the Australian financial review appears to disagree on the reasoning behind it.

Quote, "If sense prevails, when 2017 rolls around that tax – applied at 33 per cent on vehicles above the hardly luxurious price of $68,184 – will go away as the last of the Australian car manufacturers it was designed to protect close their doors."

Full article here

Was this the article? http://www.afr.com/personal-finance/why-the-luxury-car-tax-makes-no-sense-20151006-gk2xno

If so then it's an opinion piece and the author is mistaken as to the LCT origin. I don't know of any legislation before the parliarment to change it and I'm sure the lefties would be all over it as govco giving only to the 'rich'. The political cost would be far more than any benefit what so ever.

Further, with regards to the authors erroneous opinion, even a little amount of digging finds the original Bill introduced into parliament 1999 which reads (in part):

3.0 Luxury Car Tax Overview
As a result of the introduction of the GST together with the abolition of WST, motor cars in general would fall in price.

Luxury cars, however, would fall in price even more dramatically as they are currently subject to 45% WST on the value above a 'luxury' threshold, as opposed to 22% WST which applies generally. The luxury threshold is specified in Schedule 6 to the Sales Tax (Exemptions and Classifications) Act 1992 as being a taxable value more than 67.1% of the motor vehicle depreciation limit, currently $55,134.

http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd9899/99bd159

I think I'll take the legislation as a more credible source over some hack journo preaching to the converted trying to fill up her daily column inch quota.