[corbz]

The following amendment was successfully added to the bill tonight by Senator Xenophon.
http://www.aph.gov.au/Senate/DynamicRed/docs/5537.pdf

Which means that if you had entered into the contract for purchasing the car before the announcement of the increased LCT on May 13, but the car wasnt delivered until after June 1 (or has yet to be delivered) then you are exempt from the increase. Im sure this will be good news for some. Bad news is more taxes on cars which are already some of the highest taxed in the world Bunch of clowns.

[OZBB]

Bummer - but I had prepared myself for this, so I'm not surprised. I did see an article that suggested that some BMW 3 Series cars will be exempt if they have a rated fuel economy of 7l/100km or less .... so some people have been spared...but not me.....

what also eats me up is the fact that LCT is based on the post GST price - isnt this a tax on a tax?.... how can that be allowed? I just hope our hard earned tax dollars are put to good use..... (he say's laughing bitterly)

OZBB aka Glenn

[WOPALX]

At least it will be good for resale of fairly new second hand cars

[BMW //MPOWER]

Originally Posted by WOPALX

At least it will be good for resale of fairly new second hand cars

I doubt it, with rising unemployment, lower consumer confidence and tighter credit, car dealers will be crying poor (several already are incl. BMW & Mercs) as volume of sales drop right off, so i'd expect to see more discounting through promotions and maybe even some form of price reductions.

Just look back to what happened to Porsche dealers in the 90's.

FYI - BMW Sydney sent around a flyer just a couple of days ago offering free on-roads for new 335i sedans and other e90 models.

[JamieA]

They say a picture tells a 1000 words.... well here is my 1k

[AndDee]

Very sad, but pretty much expected that this would pass eventually.

Thanks to all the morons that voted for Krudd.

He's a little school boy running around with no idea

Lets raise tax on alcohol, luxury cars after all they can all afford it, this way we can spend more on the other rubbish election promises that we made but still haven't delivered anything.

The ALP MUST get kicked out at the next election.

Malcolm Turnbull is a good leader and I wish him all the best.

I watched Question time on the ABC the other night and seeing Krudd and the red haired monster joke and laugh around like school boys and girls, while Malcolm Turnbull was pretty much just frowning and so not interesting in their foolish behaviour.

This tax increase has pretty much put a stop to the purchase of the X6 which I really really want to replace my Suby Impreza. Keeping the 335i of course!

I will see what the dealer's will do but not happy to pay this extra LCT

[JamieA]

Yes all style over substance. I am clicking my little ruby shoes together hoping it is all a bad dream and I will wake up and the Liberals will be back in power and the country and economy once again back in a safe pair of hands, and with a party in power that wants to govern, not points score like school boys.

I swear krudd was the hated, and much derided dorky boy at the back of the class pulling the wings off the back of flies thinking "one day I will get them all back"

[BMW //MPOWER]

Ok, yes it's a bit of a stretch, but it looks like the changes in LCT weren't all bad..... see BMW Aus press release below..


13/10/2008 Lower taxes make efficient BMW models more affordable.


Selected BMW models now have reduced recommended retail prices due to changes in the Luxury Car Tax regime that benefit efficient vehicles.

The BMW 520d, X3 2.0d and 320d Executive are key beneficiaries of the new tax structure which reduces the impact of luxury car tax on vehicles consuming seven litres per 100 km, or less.

The BMW 520d is now priced from $75,888, reflecting a reduction in luxury car tax of $5,345, thanks to the car’s efficient powerplant which consumes only 6.1 litres per 100 kilometres.

Pricing of the BMW X3 2.0d has dropped to $61,830 as it no longer attracts any luxury car tax.

The BMW 320d Executive also benefits from the new tax regime and now retails for $58,571.

In addition, all factory fitted options on the above mentioned cars also attract no luxury tax up to the new threshold of $75,000.

[Chris.G]

Good read!

http://images.google.com.au/imgres?i...%3Den%26sa%3DN

[BMW //MPOWER]

Originally Posted by Chris.G

Good read!

http://images.google.com.au/imgres?i...%3Den%26sa%3DN

Hahaha good spot!
I'll have to call Sinclair and commend him on an article well written.
(He was one of my corp finance professors during my masters)

[aggie57]

Originally Posted by BMW //MPOWER

Ok, yes it's a bit of a stretch, but it looks like the changes in LCT weren't all bad..... see BMW Aus press release below..


13/10/2008 Lower taxes make efficient BMW models more affordable.


Selected BMW models now have reduced recommended retail prices due to changes in the Luxury Car Tax regime that benefit efficient vehicles.

The BMW 520d, X3 2.0d and 320d Executive are key beneficiaries of the new tax structure which reduces the impact of luxury car tax on vehicles consuming seven litres per 100 km, or less.

The BMW 520d is now priced from $75,888, reflecting a reduction in luxury car tax of $5,345, thanks to the car’s efficient powerplant which consumes only 6.1 litres per 100 kilometres.

Pricing of the BMW X3 2.0d has dropped to $61,830 as it no longer attracts any luxury car tax.

The BMW 320d Executive also benefits from the new tax regime and now retails for $58,571.

In addition, all factory fitted options on the above mentioned cars also attract no luxury tax up to the new threshold of $75,000.

Yep - we took delivery of our X3 2.0d on June 20th. Which of course means that rather than save some money (as I thought...) we actually spent more than if we had waited 2 weeks. Ha!

[Chris.G]

Originally Posted by BMW //MPOWER

Hahaha good spot!
I'll have to call Sinclair and commend him on an article well written.
(He was one of my corp finance professors during my masters)

haha

I was looking for a funny pic of Krudd and i stumbled across this article, very decent write-up.

[bcoz]

Originally Posted by aggie57

Yep - we took delivery of our X3 2.0d on June 20th. Which of course means that rather than save some money (as I thought...) we actually spent more than if we had waited 2 weeks. Ha!

If it makes you feel any better, the LCT law was passed with an amendment from Senator Xenophon and therefore only applies to contracts made after the changes were announced on May 13. Unless you bought your X3 off the lot, I'm assuming you must have placed your order well before May 13, in which case the timing of your delivery would not have made a difference.

[aggie57]

Originally Posted by bcoz

If it makes you feel any better, the LCT law was passed with an amendment from Senator Xenophon and therefore only applies to contracts made after the changes were announced on May 13. Unless you bought your X3 off the lot, I'm assuming you must have placed your order well before May 13, in which case the timing of your delivery would not have made a difference.

Yep - correct. We placed the order in February. So we paid LCT based on the old scale (i.e. starts at $57k) whereas as I understand it under the new rules we would only have paid above $75k IF we had taken delivery after July 1st. Is that your reading of it as well?

[bcoz]

Originally Posted by aggie57

Yep - correct. We placed the order in February. So we paid LCT based on the old scale (i.e. starts at $57k) whereas as I understand it under the new rules we would only have paid above $75k IF we had taken delivery after July 1st. Is that your reading of it as well?

My understanding (for orders made prior to 1 July) is that to be taxed under the new rules, 2 conditions had to be met..... the order had to be placed after May 13 AND delivery had to be on or after 1 July. As your order was placed in February, it falls under the old rules, irrespective of the delivery date. But who could've predicted in February?

Having said that, as you previously mentioned that your M3 order was also placed in February, and providing you have a binding contract (I'm not a lawyer, so you may have to speak to your dealer or seek advice), then your M3 may also be taxed under the old rules, thereby avoiding the increase in LCT.

[aggie57]

Originally Posted by bcoz

My understanding (for orders made prior to 1 July) is that to be taxed under the new rules, 2 conditions had to be met..... the order had to be placed after May 13 AND delivery had to be on or after 1 July. As your order was placed in February, it falls under the old rules, irrespective of the delivery date. But who could've predicted in February?

Having said that, as you previously mentioned that your M3 order was also placed in February, and providing you have a binding contract (I'm not a lawyer, so you may have to speak to your dealer or seek advice), then your M3 may also be taxed under the old rules, thereby avoiding the increase in LCT.

Yes, correct. I am still waiting for BMW to provide final confirmation but their initial response is that the M3 will be at the old LCT rate.

[aussie_335]

Hi Guys.
Picked up my 335i coupe in August and had to pay the extra LCT. My car was contracted on April 24th so with the senate ammendments to the LCT since my car was contracted before the May budget announcement and delivered after July 1st I am entitled to get the increase in the LCT back. Has anyone actually got the extra back yet. I have been in contact with my dealer (Brisbane BMW) about the refund and they state they are still waiting on advice. In my case it is about $3500 (the difference between the 25% and 33%) so it is not an insignificant amount. Anyway would love to know if anyone has received a refund yet.
cheers

[aggie57]

Originally Posted by aussie_335

Hi Guys.
Picked up my 335i coupe in August and had to pay the extra LCT. My car was contracted on April 24th so with the senate ammendments to the LCT since my car was contracted before the May budget announcement and delivered after July 1st I am entitled to get the increase in the LCT back. Has anyone actually got the extra back yet. I have been in contact with my dealer (Brisbane BMW) about the refund and they state they are still waiting on advice. In my case it is about $3500 (the difference between the 25% and 33%) so it is not an insignificant amount. Anyway would love to know if anyone has received a refund yet.
cheers

Now that they have announced new pricing for their diesel cars you'd have to think they have received relevant advice. I'd start applying some more pressure....

[aussie_335]

Hi guys.
Just a quick update. Spoke to my dealer yesterday and a cheque has been drawn and posted for the refund in the LCT. As my car was ordered before the LCT increase was announced I get the increase refunded. A nice little bonus

[JamieA]

Great to hear it is finally resolved for you