OZschwitz slave pen: "It's outrageous. The government makes more out of a vehicle than we do"

AUSTRALIANS are paying up to three times more than others for luxury cars.

A Herald investigation in today's Drive section reveals similar models from BMW, Mercedes-Benz and Rolls-Royce are significantly cheaper in countries such as the US and Britain.

One of the biggest disparities concerns Rolls-Royce's Phantom limousine. In Australia the luxury sedan costs $1,068,000 before on-road charges but, based on current exchange rates, Americans can buy it for the equivalent of $373,000.

Britons can drive away in a Porsche 911 sports car for about $107,000, while Australians must pay $223,000.

Even Australian-made sedans are cheaper when they are sold overseas. When Holden exported its Commodore SS to the US as the Pontiac G8 GT, it cost about $30,000, roughly $15,000 less than it costs here.

The makers of luxury cars blame the 33 per cent luxury car tax, which was first imposed in 2000 at 25 per cent.

The luxury car tax is still ''a rogue tax,'' said David McCarthy, of Mercedes-Benz. ''If the government believes that luxury goods should be taxed, then why can you buy a personal jet and pay only GST?

''[For luxury cars] there's the 5 per cent import duty, 10 per cent GST and then the LCT at 33 per cent. It's outrageous. The government makes more out of a vehicle than we do.''

Audi and BMW are calling for the tax to be reviewed. Mercedes-Benz argues it should be abolished in favour of a system based on emissions.

An automotive industry analyst says the luxury car tax may contribute notably to high prices but believes car makers are still potentially taking advantage of Australian buyers having been conditioned to high luxury-car prices since the tariffs of the 1970s and 1980s.

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OZschwitz slave pen: "It's outrageous. The government makes more out of a vehicle than we do"

OZschwitz slave pen: "It's outrageous. The government makes more out of a vehicle than we do"

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