The Australia Institute says tax exemption on ‘commercial vehicles’ with no testing requirement is incentivising people to buy utes instead of EVs
A loophole in Australia’s tax law is effectively subsidising the price of luxury utes such as Ram and Chevrolet SUVs, costing taxpayers more than $250m a year in foregone revenue, an analysis has found.
The research from the Australia Institute centres on the Luxury Car Tax (LCT) – introduced in 2000 for imported cars partly to protect the domestic industry that existed at the time – and an exemption that applies to certain utes.
