Value Collector
Have courage, and be kind.
- Joined
- 13 January 2014
- Posts
- 12,237
- Reactions
- 8,482
Thats my point, the government is already taking such a large chunk of the income from people, So trying to think of inventive ways to add extra taxes when they spend the remaining after tax dollars is silly, especially when we already pay GST on money we spend.The $88867 would have been paid whether you bought a luxury car or just kept the money, so its a bit spurious.
You cannot get a credit of the Luxury car tax and depreciate the total amount as well on a lease.
As your quote says, they get a credit for it on the activity statement, so either way it's not going to be generating extra taxes for the government in that situation, So it does not serve the purpose you claim which was to tax uber wealthy people with business vehicle leases.
As I said it was introduced to protect a local industry which no longer exists, so yes its silly to still have the tax.
Sure, people with Tall Poppy syndrome love taxes that target people that have higher incomes than them, but the fact is that tax brackets are already set up to make sure higher income earners pay more tax, in fact the year I bought my model 3, I sent a cheque to the tax department large enough to buy 6 Tesla model 3's.
So if I am spreading sending the government 6 Tesla model 3's, I see a luxury vehicle tax designed to stiff me of another few 1000's as a bit rich, and rather unnecessary.