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See update 1/07/2019: VACC wins duty relief

THE Victorian government has taken a hard line on the issue of charging its new super-luxury stamp duty on new vehicles, refusing to exempt buyers who had already placed firm orders ahead of the budget being brought down on May 27.

The Victorian Automobile Chamber of Commerce (VACC) has told members that the chamber’s request for an exemption of the application of the new super-luxury duty to deals or contracts on any affected vehicle from a pre-existing or pre-ordered vehicle that will be registered after June 30 has not been successful.

The Victorian treasurer’s office has officially told the VACC that it was not the government’s intention to exempt pre-ordered vehicles.

This means that any vehicle registered after June 30, 2019, will be subject to the new super-luxury duty.

The VACC had requested that, at the very least, the government exempt transactions from the application of the new super-luxury duty on vehicle deals pre-ordered or executed by the LMCT and consumer before the date of the budget announcement (May 27).

The chamber said in a statement: “It is disappointing the government has rejected this request.”

The treasurer’s office had been supplied with the VACC submission ‘Super Luxury Car Tax Immediate Impacts’. This submission was created using 100 per cent dealer data and feedback.

The VACC is recommending dealers now move to update their dealer management systems to allow for the new super-luxury duty.

Meanwhile, the chamber says it will continue to lobby for the exemption of application of duty to accessories and aftermarket fitments. A delegation of dealer members from the VACC will meet with treasurer Tim Pallas on June 25.

By John Mellor

Branded Financial