Tax breaks for ‘big, dumb’ American-style utes costing us $250 million a year, Australia Institute claims

Australian taxpayers lost out on a quarter of a billion dollars in revenue in 2023 thanks to a generous tax loophole for “big, dumb” American-style utes, a report says.

Large utes such as those made by Chevrolet and Ram are being subsidised as they are exempt from the Luxury Car Tax while contributing to higher carbon emissions, road damage and serious safety concerns, according to a report by think tank the Australia Institute.

The “loophole” cost the Australian public $250 million in foregone revenue in 2023 alone, while other imported cars valued above $81,000 continue to be subject to the tax.

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The exemption applies to any vehicle that can carry twice the weight in payload that it can carry in people, regardless of what it is used for.

“The Australian public is subsidising big, dumb utes by hundreds of millions of dollars each year,” Australia Institute research director Rod Campbell said.

“These vehicles are damaging roads, reducing safety and increasing emissions, yet they are given a massive tax break.”

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