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Family First Gets Wins For Farmers and Tour Operators

Press Releases September 17 2008

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THE GOVERNMENT has agreed to Family First’s commonsense demands to exempt farmers and tourism operators from the increased car tax.

“Family First rejected the increased car tax last fortnight because the government would not exempt farmers and tourism operators from this tax hike,” Family First leader Senator Steve Fielding said today.

“Family First has been able to successfully negotiate with the government and is pleased the government has agreed to concessions worth an estimated $40 million over four years. Family First will now seek the support of the other parties in the Senate.

“Vehicles purchased by farmers and tourism operators are tools of trade. Other businesses get full exemptions for their vehicles from the car tax, so farmers and tourism operators should not be slugged with the extra tax. They are already struggling with high petrol prices, the impact of the drought and a strong Australian dollar.

“Farmers and tourism operators can only claim depreciation and GST input tax credits up to the $57,180 car tax threshold, so these tax breaks do not cover the extra car tax.

“The amendments negotiated with the government provide refunds to farmers and tourism operators so they can claim back the extra 8% car tax from the Tax Office once they have purchased their four-wheel drive vehicle. The amendments allow claims up to $3,000 per year for primary producers and $3,000 per vehicle per year for tourism operators.

“The tourism industry is heavily dependent on the eight-seater diesel Toyota LandCruiser and similar vehicles. The extra tax would have unfairly hit small tourism operators in regional Australia that need four-wheel drive vehicles.

“Farmers are also dependent on heavy duty four-wheel drive vehicles like the LandCruiser, which offer reliability and safety in regional and remote areas, especially on poorly maintained roads.

“Family First also supports ensuring those who ordered a car before the extra tax was announced on 13 May 2008 but who took delivery after 30 June will not have to pay the extra tax.”