20% GST on cars!

[2011G6E]

As cars have gotten (relatively) cheaper, more and more people are buying new cars these days. Even "low income earners" can often afford a brand new car. Why punish everyone just to make a point?

Oh, and we can't go back to the "good old days" and impose special taxes on imported cars...nearly all the cars we have here are imports. Not to mention the little thing called "retaliation" by whatever country those cars come from against our exported goods...we're not a big powerful country, we're a tiny country that needs all the friends it can get when it comes to trade. The world can do very nicely without us at all when it comes to traded goods, but they prefer to deal with us because we're a stable western democracy plonked in the middle of countries that are anything but.
They could just as easily source, say, coal or steel or food from a dozen other countries around the world, but they don't. Sometimes it's better to keep your head down rather than pretend you're a bigger fish than you actually are.

[ivorya]

Retaliation didn't occur when the USA put large Tariff's on imported motorcycles to protect their beloved Harley Davison, which worked wonders for the brand.
In fact, it created more jobs in the country as the Japanese started building bikes and cars in the US to get around these tariffs.

[UberKnee]

Originally Posted by ivorya

Retaliation didn't occur when the USA put large Tariff's on imported motorcycles to protect their beloved Harley Davison, which worked wonders for the brand.
In fact, it created more jobs in the country as the Japanese started building bikes and cars in the US to get around these tariffs.

But that's the US, a huge country, the superpower of the last several decades who have their hands in pretty much every industry across the globe. We're small fish. You cant really compare America and Australia, as 2011G6E said what we provide to the world can easily be found elsewhere and probably cheaper as well. America was strong enough to support Harley like that, we're not in the same position being very reliant on imports/exports.

[pottery beige]

Originally Posted by Big Damo

Legalise weed and tax the crap out of it and come down hard on dealers, big $$$ stream.

i'll smoke bongs to that

but i dont smoke bongs

good idea

centerlink revenue is injected straight back into govco

[ILLaViTaR]

Originally Posted by turbodewd

Ok, so soon Australia wont be producing cars and we have a federal budget deficit. I say lift the GST on cars to 20%. This wont hurt the lower income earners who dont buy cars anywhere near as often as the slightly well-to-do (who also buy more expensive cars). This has no free trade implications either.

Do it Mr Abbott! Make it 12% in 2014, 14% 2015, 16% 2016 and 20% in 2017.

Auto imports are around $25billion/yr so this would net the Feds maybe another $2billion per year?!

As if the costs of a new car weren't excessive enough most low to average earners can't afford the current costs to the point a loan these days is now considered a standard it's quite disgusting really. By the time it's paid off for most people the car is old and it's time to upgrade, depressingly never getting ahead.

If you want to make a lot of money for the country change the tax rate for small businesses to 47% over 80k or whatever (ie 30% flat below 80k) it is for everyone else. That 47% bracket is well over standard wages and it makes no sense as to why they get a free tax ride from the highest bracket it's an outrage to most people. If this was implemented our country would be richer than it has ever been. Funny how this is hardly ever mentioned.

[2011G6E]

Originally Posted by ivorya

Retaliation didn't occur when the USA put large Tariff's on imported motorcycles to protect their beloved Harley Davison, which worked wonders for the brand.
In fact, it created more jobs in the country as the Japanese started building bikes and cars in the US to get around these tariffs.

That's the USA, a massive economy with over 300 million people...and Harley is a bit of a bad example, as Yanks seem to honestly think that you can't get a better motorcycle than a Hawg and a lot buy them purely for that fact and that they're American, good or bad.

As said above, we absolutely rely on imports of a lot of things. We're a western country with modern western living standards in the middle of billions of people who live on a normal wage of a few bucks a day for a skilled worker. We can never compete equally, and as I said, as had as some people might find it, we should just keep our head down and work on providing what people want to buy and be thankful for it.
Because the uncomfortable fact is that with a change of government/ideology in charge of those countries, they could all turn their back on us very quickly indeed, and then where would we be?

[cheap]

The logic here comes directly from the Wayne Swan school of economics.

Increase the FBT - car sales slump and results in early closure of GMH
Bung on a CO2 Tax - almost everyone gets slugged directly/indirectly for an almost zero reduction in emissions (the reduction is probably because of business closures)
Mining Tax - the cost to administer the tax exceeds the revenue collected, and caused a major down turn in mining activity

If a 20% GST was so good, why not a 30% tax or a 100% tax?

[Franco Cozzo]

Originally Posted by 2011G6E

That's the USA, a massive economy with over 300 million people...and Harley is a bit of a bad example, as Yanks seem to honestly think that you can't get a better motorcycle than a Hawg and a lot buy them purely for that fact and that they're American, good or bad.

As said above, we absolutely rely on imports of a lot of things. We're a western country with modern western living standards in the middle of billions of people who live on a normal wage of a few bucks a day for a skilled worker. We can never compete equally, and as I said, as had as some people might find it, we should just keep our head down and work on providing what people want to buy and be thankful for it.
Because the uncomfortable fact is that with a change of government/ideology in charge of those countries, they could all turn their back on us very quickly indeed, and then where would we be?

Something related on manufacturing but I watch this podcast, just a bunch of geeks and they were complaining about the new Mac Pro, how Apple decided to manufacture it in Texas, and everyone was having a sook why it was so expensive compared to the previous models and how they cant meet demand.

One guy went off and was saying that is the cost of manufacturing in the USA and that they cant compete with China because of wages in the USA, and that Foxconn who manufactures Apple products in China would have no problems meeting demand rather than having a 6 month wait and it would be cheaper.

Its not just here people having a sook about the price of manufacturing, even the USA can't compete.

[buggerlugs]

Originally Posted by turbodewd

Ok, so soon Australia wont be producing cars and we have a federal budget deficit. I say lift the GST on cars to 20%. This wont hurt the lower income earners who dont buy cars anywhere near as often as the slightly well-to-do (who also buy more expensive cars). This has no free trade implications either.

Do it Mr Abbott! Make it 12% in 2014, 14% 2015, 16% 2016 and 20% in 2017.

Auto imports are around $25billion/yr so this would net the Feds maybe another $2billion per year?!

I thinks someone has had to much xmas plum pudding.............take a bex and have a lie down eh.........

[Bill M]

Originally Posted by cheap

The logic here comes directly from the Wayne Swan school of economics.

Increase the FBT - car sales slump and results in early closure of GMH
Bung on a CO2 Tax - almost everyone gets slugged directly/indirectly for an almost zero reduction in emissions (the reduction is probably because of business closures)
Mining Tax - the cost to administer the tax exceeds the revenue collected, and caused a major down turn in mining activity

If a 20% GST was so good, why not a 30% tax or a 100% tax?

Where does your "logic" come from?
Looks like it was lifted right out of NewsCorp scribblings.

[Stefan]

Originally Posted by turbodewd

Ok, so soon Australia wont be producing cars and we have a federal budget deficit. I say lift the GST on cars to 20%. This wont hurt the lower income earners who dont buy cars anywhere near as often as the slightly well-to-do (who also buy more expensive cars). This has no free trade implications either.

Do it Mr Abbott! Make it 12% in 2014, 14% 2015, 16% 2016 and 20% in 2017.

Auto imports are around $25billion/yr so this would net the Feds maybe another $2billion per year?!

The stupidity of your post is that you forecast $2 billion revenue, you then spend the 2 bill on another dumb policy. A few years later you realise that your stupid idea has reduced car sales to $23 billion a year due to the tax increases........now have even less revenue as well as having already spent the 2 billion you thought you had.

Julia is that you? Have you joined FF.com.au.

Increase tax on alcohol and cigarettes is designed to reduce spending in that area....so what would increase in tax on new cars do? The brain dead obviously reside in Canberra.

[XR6T0Y]

I wish my "low income" could buy a new car. ****, I wish I could just afford a new car, let alone them costing more!

[Bill M]

Originally Posted by 2011G6E

As cars have gotten (relatively) cheaper, more and more people are buying new cars these days. Even "low income earners" can often afford a brand new car. Why punish everyone just to make a point?

Oh, and we can't go back to the "good old days" and impose special taxes on imported cars...nearly all the cars we have here are imports. Not to mention the little thing called "retaliation" by whatever country those cars come from against our exported goods...we're not a big powerful country, we're a tiny country that needs all the friends it can get when it comes to trade. The world can do very nicely without us at all when it comes to traded goods, but they prefer to deal with us because we're a stable western democracy plonked in the middle of countries that are anything but.
They could just as easily source, say, coal or steel or food from a dozen other countries around the world, but they don't. Sometimes it's better to keep your head down rather than pretend you're a bigger fish than you actually are.

That is a gross over simplification and conveniently ignores the costs our trading partners impose on our goods in name other than tariffs.
We are right up there in gas and uranium exports and are not the little fish you portray. We can make a difference by carefully selecting issues that are worth pursuing. That keep "your head down" ensures you will be walked on by all.

[Gadgetman]

looks like someone has started a FIRE here and there's lots of wind. This tread is about as interesting as most politians lives. I got sucked in. Hope no one else does from here.

[mik]

Originally Posted by 2011G6E

As cars have gotten (relatively) cheaper, more and more people are buying new cars these days. Even "low income earners" can often afford a brand new car. Why punish everyone just to make a point?

Oh, and we can't go back to the "good old days" and impose special taxes on imported cars...nearly all the cars we have here are imports. Not to mention the little thing called "retaliation" by whatever country those cars come from against our exported goods...we're not a big powerful country, we're a tiny country that needs all the friends it can get when it comes to trade. The world can do very nicely without us at all when it comes to traded goods, but they prefer to deal with us because we're a stable western democracy plonked in the middle of countries that are anything but.
They could just as easily source, say, coal or steel or food from a dozen other countries around the world, but they don't. Sometimes it's better to keep your head down rather than pretend you're a bigger fish than you actually are.

Well the reason they buy our stuff instead of using their own is because we sell so we are practically giving the **** away, and long before fair trade and the flood imports we where managing ok.
This will come-back to bite Us one day, my mistake, it's already killing our manufacturing.

[DJM83]

Originally Posted by XR6T0Y

I wish my "low income" could buy a new car. ****, I wish I could just afford a new car, let alone them costing more!

Agreed. For some its hard enough to be able to afford a new car.

As for taxing imports and not aussie cars. Thats total BS from the usual crowd.

[cheap]

Originally Posted by Bill M

Where does your "logic" come from?
Looks like it was lifted right out of NewsCorp scribblings.

No nothing to do with News Corp or any of the numerous other conspiracy theories that abound - just facts. But you can go and think what you like.

[minheim]

20% GST on new cars alone won't happen. The whole idea of the GST was to have a single rate across all goods and extended to services as it simplified the tax system by getting rid of varying rates depending on how goods were rated and taxed consumption and increased revenue and reduced the black economy . Any future revenue grab will more likely be across the board by a general increase of the gst or the inclusion of exempted goods/services like food and health services etc. I suspect the former than the latter will occur if the government gets a second term given revenue shortfalls facing us.

[mik]

Originally Posted by minheim

20% GST on new cars alone won't happen. The whole idea of the GST was to have a single rate across all goods and extended to services as it simplified the tax system by getting rid of varying rates depending on how goods were rated and taxed consumption and increased revenue and reduced the black economy . Any future revenue grab will more likely be across the board by a general increase of the gst or the inclusion of exempted goods/services like food and health services etc. I suspect the former than the latter will occur if the government gets a second term given revenue shortfalls facing us.

Indeed that was the original plan , the gst was supposed to be more simple, they even stuffed that up.

[ILLaViTaR]

Why don't we just make it 40% GST on new vehicles and 80% on the dollar for PAYG income earners over 40k?

[ILLaViTaR]

Originally Posted by turbodewd

Ok, so soon Australia wont be producing cars and we have a federal budget deficit. I say lift the GST on cars to 20%. This wont hurt the lower income earners who dont buy cars anywhere near as often as the slightly well-to-do (who also buy more expensive cars). This has no free trade implications either.

Do it Mr Abbott! Make it 12% in 2014, 14% 2015, 16% 2016 and 20% in 2017.

Auto imports are around $25billion/yr so this would net the Feds maybe another $2billion per year?!

Why can't you just pay over 30% on the dollar like over 80% of this country has to in your bracket?

[Bill M]

Originally Posted by cheap

No nothing to do with News Corp or any of the numerous other conspiracy theories that abound - just facts. But you can go and think what you like.

No not facts, simplistic politics that is crafted like a 30 second sound bite.
Happy new year

[aussie muscle]

Originally Posted by Kable72

That will only make cars more expensive than they already are for imported cars. We already pay enough tax. We don't need more.

they could put a 10% discount on GST if that car is assembled in australia!

[NAK302]

aaah yeah, tall poppy syndrome is alive and well on FF. if you've done alright and want nice things, tax them baby!!

[kaniSS]

Get stuffed. First cars, then everything else gets lifted. Canberra can go **** itself, we already overpay for everything in this country.

[FGX-351]

Originally Posted by mik

Indeed that was the original plan , the gst was supposed to be more simple, they even stuffed that up.

They needed to appeal to the Australian Democrats to get it through the Senate at the time.

Taking food out was what they negotiated on, not a stuff up.
Although Peter Costello was displeased with this agreement.

Sorry for off topic, i'm good for random boring facts!

[FGX-351]

Originally Posted by Bill M

No not facts, simplistic politics that is crafted like a 30 second sound bite.
Happy new year

The election was in September, you sound like a Labor commercial.

[Bill M]

Originally Posted by The-ShowStoPPa

The election was in September, you sound like a Labor commercial.

If you are half as smart as you think you are then you may have seen from previous posts I have dished the dirt on both sides, especially on the point of manufacturing. Like no labor commercial I know of

[FGX-351]

Originally Posted by Bill M

I have dished the dirt on both sides, especially on the point of manufacturing. Like no labor commercial I know of

lol yeah i'll agree with that.

I was refering to the talk of News corp & soundbites.
For moment I wasn't sure if I was on FFAU or watching an ep of Q&A(which i'm obsessed with).

[WPR1]

I thought the prices would now be able to come down as we are not trying to protect an uncompetitive local car industry! My friends in the US can't believe now bad we are stung on car prices here.