Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Hansard source

Because we were busy paying off your debts, Senator Conroy. You left $96 billion worth of debts, but they are now paid off.

This decision pre-empted the Bracks inquiry, which had been asked to look into the concept of the luxury car tax and how it might impact. The government of course arrogantly disregarded its own inquiry and increased it. As a result, Mr Bracks constrained himself and did not say anything, albeit Labor senators claim that he made a positive finding in relation to that. He clearly did not.

The impact on tourism is huge. It is worth noting that about 8,000 motor vehicles that are subject to the luxury car tax are sold to the tourism industry each and every year. They are mainly small businesses and I might add they are largely buying LandCruisers. At a time when the tourism industry is suffering, the Labor Party is adding this extra impost above and beyond the $1 billion of extra taxes that Labor is imposing on the tourism sector.

Can I also dispel another myth about this luxury car tax. Only about five per cent of vehicles sold and revenue raised comes from Lamborghinis, Rolls Royces and Bentleys. The vast majority of sales and income is in the area where people are purchasing these vehicles because of necessity rather than some desire to show that they have a status symbol.

In brief, we oppose this bill and we oppose the second reading because this legislation is inflationary, inequitable and job destroying in the car sector. If the Senate decides to pass the second reading, I can flag that we will be involved in the committee stages and we will vote to try to make a bad policy less bad. But I should indicate that on the third reading we will still be opposing this legislation.

Debate interrupted.