The motoring industry’s lobby group, the Federal Chamber of Automotive Industries (FCAI), has supported calls for vehicle tariffs to be reduced which would ideally give Australian drivers access to cheaper cars.
The FCAI has chosen to frame their argument around car manufacturers incorporating better safety technology if the tariffs are reduced.
FCAI’s Chief Executive Tony Weber suggested that by providing cheaper access to safety technology more lives might be saved on our roads as well as vehicle emissions and CO2 being reduced.
“This tariff reduction proposal should be viewed as an investment in safety and technology,” Mr Weber said.
“Currently around 88 per cent of new vehicles are five-star ANCAP safety rated. However, in direct contrast to that, the current average age of the total vehicle fleet on Australia roads is around 10 years.
“Abolishing the new vehicle tariff would pass on thousands of dollars in price cuts at the showroom, which would make more vehicles with advanced safety features such as autonomous emergency braking (AEB) and lane-keeping assistance more affordable for the average consumer.
“The flow-on effect of this would also benefit our environment because new vehicles produce fewer emissions and CO2.
“The industry is very much encouraged by the Deputy Prime Minister’s comment that this proposal has merit, and we would seek an opportunity to discuss this further with him.”
“The latest safety technology on offer by vehicle manufacturers has proven life-saving capabilities. There are a number of key elements to reducing trauma on our roads and the newer cars with features such as automatic lane keeping, warning systems, and fatigue detection, are a vital part of that safety package,” Mr Weber said.
Arguing that if the government can do its part by reducing tariffs, safer vehicles would ensue and have a significant impact on reducing fatalities on Australian roads is a long bow to draw.
Lobbying to reduce vehicle tariffs isn’t a new endeavour, neither are calls for the eradication of the Luxury Car Tax.
Luxury Car Tax effects vehicles over $65,094 or $75,526 if a vehicle is classified as fuel-efficient. The rate of tax is set at 33 per cent. The problem with the tax is it unfairly effects cars such as a mid-spec Toyota LandCruiser, which is hardly a luxury car.
The industry was successful in knocking over proposed changes to parallel import laws, perhaps they can put the same muscle behind Luxury Car Tax reform.
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