Greens say Family First independent may shoot down LCT
Despite the Greens talking turkey with the Government, the proposed increase in the LCT may be thrown out this afternoonA deal between the Greens and the Federal Government to exempt fuel efficient cars from the Luxury Car Tax, may not be enough to get the proposed rate hike legislation through the Senate. Indeed, it now seems the future of the bill rests with independent senator, Steve Fielding (pictured).
When the Carsales Network contacted the Greens this afternoon, the state of play regarding the passage of the bill was described as "extremely unclear" by Oliver Waldring, Senior Advisor to Greens senator, Christine Milne.
"It will go to a vote this afternoon but Senator Fielding could kill the bill at that point," Waldring stated.
It's believed the independent Family First party senator is not willing to budge on his amendments that would exempt certain buyers and classes of vehicles such as farm-based SUVs.
The Greens deal with the Rudd Government to support the LCT increase, on the other hand, included an amendment to exempt all cars with fuel economy of better than 7.0L/100km and priced under $75,000.
Such vehicles would not only be exempted from the price increase but excused from LCT altogether. Senator Milne was the playmaker for the Greens.
According to Waldring, the party's first preference was that the bill be withdrawn and redrafted.
"The Government made it clear that was not an option," he explained. "So we are seeking to make sure the most fuel efficient vehicles are exempted."
Waldring said the move would send "a signal" to consumers.
"We imagine there will be some market impact as they [the vehicles] would be fully exempted from LCT -- though the vehicles are at the margin [of mainstream sales]," he told the Carsales Network.
Vehicles that would be affected by the Greens amendment include Mercedes-Benz C220 CDI and Audi A4 2.0 TDI.
Waldring said the Government forced the $75,000 pricing cap.
"They wanted to make sure that if Porsche was to release a $200,000 car better than 7.0 [L/100km fuel economy] that would be captured," Waldring said.
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