The price of high-end electric vehicles could be dramatically reduced for Australian drivers as a result of trade negotiations with the European Union as the federal government mulls slashing the controversial luxury car tax or potentially scrapping it entirely for low-emissions vehicles.
European car makers have pushed for the removal of an Australian tax on high-end car imports as part of trade talks.The automotive industry and EV advocates have long argued that many popular electric models are subject to this tax, hindering their access to the Australian market. The threshold for fuel-efficient cars – vehicles with fuel economy numbers below 7.0 litres per 100 kilometres – and EVs has been raised a handful of times during the past few years and will be lifted again from July 1, moving from $84,916 to $89,332. The threshold for standard petrol and diesel cars will be lifted from $71,849 to $76,950.