With the announcement of Holden ceasing as an automotive brand at the end of 2020, this marks the conclusion of large scale Australian car brands.

In considering this, we must consider what this means for the Luxury Car Tax (LCT). the Luxury Car Tax (LCT) was introduced on the 1st July 2001 under the Coalition government. The original point of the Luxury Car Tax (LCT) was to protect the Australian automotive industry and encourage people to buy locally manufactured vehicles. However, given that local mass manufacturing of light vehicles will cease by the end of 2020, the Luxury Car Tax (LCT) now holds no relevance as there is no Australian mass car manufacturers left to protect. One could argue that there are still some small scale manufacturers in Australia, however these businesses mainly produce niche style vehicles not suited to the day-to-day uses of the wider public.

Luxury Car Tax (LCT), in my own opinion, ceased to serve a purpose following the cessation of Holden’s manufacturing operations at Elizabeth, South Australia in 2017.

Given all this, I and indeed most, if not all, would feel that the Luxury Car Tax (LCT) has now reached a point of obsolescence, for there is nowhere left to turn locally for Australians to purchase cars, the only option is to turn to overseas brands. The original reasoning for the Luxury Car Tax (LCT) no longer stands. This tax must now be repealed. 

Photo credit: CarsGuide