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Luxury Cars to Buy In Australia That Avoid The Luxury Car Tax

Posted on: June 25, 2014 by Platinum Direct

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Everyone dreams of owning a luxury car and that dream has never been more desirable, or achievable. Thanks to the higher than average Australian dollar over the last few years, purchasing a luxury car especially using car finance is more affordable than ever. However, owning a luxury car has its negatives, namely the Luxury Car Tax.

A Luxury Car Tax is a tax that was introduced in July 2000 alongside the Goods and Services Tax (GST). It is imposed on the sale of vehicles which meet a ‘luxury car’ criteria. Most cars over a certain price range are affected, but this threshold changes every financial year.

Luxury Car Tax
Source: wamu.org

The most recent 2013-14 financial year saw the threshold for normal vehicles at $60,316.00 and more fuel efficient vehicles at $75,375.00. The tax is calculated depending on the purchase price of the car, but for a $90,000 car the tax could be as much as another $10,000 extra. This is a huge amount of money to add to the purchase of an already expensive car.

If you’re looking to buy a new luxury car, unfortunately, there aren’t any ways to get around paying this tax. Calculate how much you can afford with our car finance calculator. Otherwise there are a few cars that offer the luxury features but aren’t classed as a ‘luxury car’. Priced under the tax threshold, you will get most of the quality features you’d expect of a luxury car without the hefty price tag.

Alfa Romeo Guilietta

The entry level Alfa Romeo Guilietta sits around $47,000, well under the luxury car tax threshold. This doesn’t mean you miss out on any of the extras, with a 2.0 Litre turbocharged 4 cylinder diesel engine and 350Nm of torque. Its got all of the expected features, leather interior, cruise control, sun roof, and climate control. The Guillietta’s sporty design and quick handling ensure you feel like you’ve bought a luxury car, but your wallet doesn’t.

Alfa Romeo Giulietta
Source: viewsupercars.blogspot.com.au

Audi A4

The latest Audi A4 was originally priced at a recommended retail of over $72,000 but are currently selling for $55,990 drive away. Keyless entry, 18inch alloy wheels, adaptive radar guided cruise control, MMI Navigation Plus and a reverse parking camera all add up to a luxury look and feel. The 2.0 litre 4 cylinder diesel engine packs a punch and buyers won’t be disappointed.

Audi A4
Source: otomotifbaru.blogspot.com.au/

Lexus CT 200h

The all new hybrid Lexus screams luxury. With a moonroof, satellite navigation, heated seats, climate control, keyless entry and push-button start, rear view camera with park sensors and a hybrid petrol engine, there is no end to the high end features this car possesses. A sporty looking hatch, the Lexus CT 200h is currently available for $55,173 drive away.

Lexus Ct 200h
Source: lexusenthusiast.com

These cars are a great alternative to those luxury cars that exceed the tax threshold and open up a new range of possibilities for driving a sporty, feature packed car that won’t break the bank.

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