Luxury ute tax loophole costs Australians $250m a year, researchers say

The Australia Institute says tax exemption on ‘commercial vehicles’ with no testing requirement is incentivising people to buy utes instead of EVsGet our morning and afternoon news emails, free app or daily news podcast A loophole in Australia’s tax law is effectively subsidising the price of luxury utes such as Ram and Chevrolet SUVs, costing taxpayers more than $250m a year in foregone revenue, an analysis has found.The research from the Australia Institute centres on the Luxury Car Tax (LCT) – introduced in 2000 for imported cars partly to protect the domestic industry that existed at the time – and an exemption that applies to certain utes.Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup Continue reading...