Labor to tax luxury-car buyers

Labor's win in the Queensland state election over the weekend will cost luxury-car buyers, in the form of added stamp duty for cars priced above $100,000.

The ABC and Fairfax Media have reported that the measure is one of a number aimed at reducing the state's debt. According to an article in the Financial Review, the higher stamp duty imposed on luxury cars will yield $227 million over the next three years. It's planned to charge $2 more for every $100 of purchase price on vehicles over $100,000, taking effect from July 2018.

Labor has drawn fire from dealers, the LNP and the RACQ for the higher stamp duty, announced just days before the election on Saturday. The higher stamp duty has been denounced as a tax on a tax, with cars priced above $100,000 already incurring the federal government's luxury car tax. However, Queensland treasurer Curtis Pitt was quoted in the AFR report defending the higher impost.

"This is another measure that ensures those that can afford to contribute – those who are receiving a greater return from our growing economy – will make a fair contribution," he said.

"If you can afford a Maserati, a Porsche, a Lamborghini or a Ferrari you can contribute to this state and the investment of roads in Queensland."

Pitt also told the ABC that the revenue-generating measure would affect "less than one per cent of taxpayers".

"The new measures mean our commitments will be delivered without cuts to frontline services, without mass sackings, or asset sales, and without increasing other taxes that directly impact on the cost of living for average Queensland households," he said, taking a swipe at the previous LNP government of Campbell Newman.