Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

A further issue was raised in relation to the introduction of the luxury car tax. I confirmed that it was introduced in 2000 at the time of the introduction of the GST. Prior to that time there had been a differential treatment of luxury vehicles—since 1979 under a coalition government—when a luxury car tax could not gain the full benefits of depreciation due to the cap on the depreciation amount. Under the Hawke-Keating government the differential treatment was via a wholesale sales tax rate. It was a differential rate in the wholesale sales tax that led to the introduction of the luxury car tax at the time of the GST’s introduction so that luxury cars did not fall more heavily in price than other vehicles. I think that clarifies the matter.