Steve Fielding (Victoria, Family First Party) Share this | Hansard source

In September Family First successfully negotiated an exemption for farmers and tourism operators from the extra luxury car tax, which is worth $40 million over four years. But some weeks ago it was pointed out to me by the industry that a technical problem meant that farmers and tourism operators who leased a car would not get a refund of the extra tax. Family First immediately contacted the government to negotiate a way to fix the problem. The Tax Laws Amendment (Luxury Car Tax—Minor Amendments) Bill 2008 is the result of those negotiations.

The new laws will mean primary producers such as farmers and fishermen, as well as tourism operators, will be able to lease a car and still be refunded the extra car tax because their four-wheel drives are a tool of trade. Vehicles purchased by farmers and tourism operators are tools of trade. Other businesses get full exemptions for their vehicles from the car tax so farmers and tourism operators should not be slugged with that extra car tax. Farmers and tourism operators can only claim depreciation and GST input tax credits up to the $57,180 car tax threshold so these tax breaks do not cover the extra car tax.

The tourism industry is heavily dependent on the eight-seater diesel Toyota LandCruiser and similar vehicles. The extra car tax would have unfairly hit small tourism operators in regional Australia that need four-wheel drive vehicles. Farmers are also dependent on heavy duty four-wheel drive vehicles like the LandCruiser which offer reliability and safety in regional and remote areas, especially on poorly maintained roads. This bill will enable primary producers and tourism operators to claim back the extra eight per cent car tax from the Australian Taxation Office once they have purchased their four-wheel-drive vehicle.

These are people whose small businesses have already been hard hit by difficult economic times. They depend on their vehicles as a core element of their business. This tax would cripple many of them and it is unfair for them to be singled out when their vehicles are key tools of trade. The amendments Family First has achieved allow claims of up to $3,000 per year for primary producers and $3,000 per year for tourism operators. Family First supports this bill as a way of achieving the original intent of amendments passed by the Senate in September.