Toyota Passes on Tax Savings

Thousands of Toyota customers stand to benefit from lower new-vehicle prices as the carmaker has passed on the full benefits of a higher Luxury Car Tax (LCT) threshold.

Toyota's recommended retail prices have fallen by $284 for the entire LandCruiser 200 series range, four LandCruiser Prado variants, AWD Kluger Grande and Tarago Ultima V6. The 2WD Kluger Grande is now priced below the threshold, resulting in a $267 reduction.

Announcing Toyota's move, which took effect on Friday, the company's executive director sales and marketing Tony Cramb renewed calls for the abolition of the tax, describing it as an unfair impost on motorists and the automotive industry.

"This is an inequitable tax because it applies only to vehicles and not to other high-end goods such as luxury boats, jewellery and watches," Mr Cramb said.

It is unfair that such a discriminatory tax hits consumers who are already contributing significantly to government coffers through GST, stamp duty and registration fees when buying a new car, as well as hefty taxes on fuel," he said.

"Last year, more than 13,500 new Toyota owners were hit by this inefficient, punitive and poorly designed measure."

The LCT threshold rose from July 1 by $948 to $64,132 in line with inflation, while the rate for fuel-efficient cars that use no more than seven litres of fuel per 100km rose for the first time in six years by $151 to $75,526.

PRICE CHANGES, EFFECTIVE JULY 1*