Dismantle PMV tariffs and LCT

With the demise of Holden and the likely exit of Toyota, there is no justification for a protective tariff on passenger motor vehicles.

Accordingly the Government should abolish the 5 per cent tariff rate, the $12,000 special duty on the importation of used vehicles and the luxury car tax.

The Australian car industry is no longer an infant, it is a geriatric. It is suffering a case of SIIDS (sudden infant industry death syndrome).

HT: Noodle

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J has an economics background and is a part-time consultant
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20 Responses to Dismantle PMV tariffs and LCT

  1. Riverina Matt

    Cheaper and better cars – a win for everyone! The union workers employed at Ford, Holden, Toyota etc. earned their generous pay packets on the backs of reduced standards of living for all Australians, especially those on lower incomes.

  2. Brett

    Should we not also get rid of the Australian Design Rules, which were technologically unnecessary, and really just an additional cost for imports and therefor e a specie of protection. And while we are at it; why not follow Japan and allow new LHD models to be sold here as well.

  3. entropy

    In fact remove as many price increasing rules as possible at once to use the consequent price reductions to underline the burden borne by Australians for the last 70 years.

  4. AP

    Rudd quietly made importing second hand vehicles almost impossible as one of his first acts as PM. Perhaps there was something to Utegate after all?

  5. OldOzzie

    Apply the New Zealand Approach – Easy to Import Cars Customs Duty on Motor Vehicles (and Motorcycles) – Free

  6. rickw

    Brett,

    Exactly, the ADR’s should go in the bin, they were primarily designed to provide technical protectionism, eg. ADR’s different height requirement for side impact protection. All that should continue is safety ratings and let the consumers decide.

    Also agree on LHD vehicles. I can own, register and drive a LHD 60′s Mustang with apparent “safety”, and no doubt it is significantly more challenging to drive than any modern LHD vehicle. Where’s the logic to this now domestic large scale care manufacture is dead?

    Time to celebrate! Unemployed AMWU thugs and a raft of new vehicle options at great prices. What’s not to like !!

  7. egg_

    Remains to be seen what dealers, etc. will in future charge for sales, maintenance and spare parts… those hoping for a price drop may be bitterly disappointed, the contrary may be on the cards.

    File note: 17/12/2013.

    Ta.

  8. Fibro

    This is getting on a good roll……….While we are at it, we can get rid of half of the Federal Dept of Infrastructures Motor Vehicle people who no longer need to keep their day job furiously busy producing paperwork on Standards Bulletins, Public Consultations, Design Rules, Crash Tests, Import restrictions etc etc etc

  9. A H

    Parallel imports…. not only of cars, of everything! :)

  10. Rabz

    Rudd quietly made importing second hand vehicles almost impossible as one of his first acts as PM.

    The vile, narcissistic earwax guzzling onanist also jacked up the LCT at the first available opportunity.

    FFS, even the Wombat Henry Tax Review recommended the scrapping the of the LCT.

  11. David

    Brett and rickw I agree with your suggestion re the ADR’s having had a bit to do with them over the years however there is a valid reason for keeping the driving position on the right hand side in a country that drives on the left side of the road – forward visibility with minimum exposure when contemplating overtaking.

  12. entropy

    Sure David. But therein lies your answer. Should the red tape reduction that is now suddenly a real option in the car industry extend to changing road rules so that everyone also drives on the right side of the road?

  13. David

    Good idea entropy. We could have a six months trial with just the B-doubles using the drive on the right system. :-)

    If that works out we could all change over.

  14. Kaboom

    Driving on the correct side (i.e. left) of the road is a proud tradition demonstrably extending back to Roman times, where archaeological investigations at quarries demonstrably proved that ancient Romans drove on the correct side of the road.

    I’m on history’s side.

  15. Kaboom

    I’ve demonstrably proven that I rarely proof-read…

  16. Craig Mc

    Should the red tape reduction that is now suddenly a real option in the car industry extend to changing road rules so that everyone also drives on the right side of the road?

    They did it in Sweden, but with a fraction of the cars on the road that we would have today. I hadn’t realised there was a headlight issue.

  17. Rabz

    Driving on the Left or Right side of the road?

    Perhaps we could have a dedicated thread on this vitally important topic.

    FWIW, I’ve driven LHD cars around the States and Europe, taken to it like a duck to water and then always struggled for several weeks after getting back to Oz. Maybe it’s because I’m right handed. Or maybe not.

  18. egg_

    there is a valid reason for keeping the driving position on the right hand side in a country that drives on the left side of the road – forward visibility with minimum exposure when contemplating overtaking.

    Yup, so that you’re nearest the centre of the road, regardless of what country you’re in.

  19. Brett

    I wasn’t advocating changing the side of the road on which we drive; I merely pointed out that in Japan you can buy and use new cars in either LHD and RHD. There haven’t, so far as I am aware, been any adverse safety outcomes from the sale and use of LHD drive cars in Japan; so it is hard to oppose it on safety grounds. And it opens up to the market a whole range of cars that could not otherwise be sold and used, and the greater economy of scale with LHD manufacture.

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