The Australian government has recently imposed a tax for owners of luxury cars. As you would expect, some citizens are fairly upset about it, too.
The House of Representatives in Australia passed a bill that would increase the existing tax of 25 percent to 33 percent on luxury cars that cost more than $57,200. The Senate referred the bill to another committee for consideration. It was going to go into effect in July, but passing it to the other committee delays its effectiveness until August at the earliest. However, if passed, the bill could be retrospective to July 1.
Dealers aren’t happy with the new bill either. According to a spokesperson for area dealers, the situation simply puts them in “the middle of a huge red tape bungle.” While the bill is in limbo, the dealers can either charge the car buyers the extra eight percent for the luxury tax and hold onto it in case it becomes law or they can hope to collect the money after the sale if the bill goes into effect.
The Senate can either pass the bill or amend it. Right now, it’s uncertain what’s going to happen with it.