Is There an Aussie Tax on New Cars?

Buying a new car can be a costly event. However, buyers in Australia are increasingly frustrated by what appears to be an Aussie tax imposed on the Australian automotive market. Popular models such as the Mazda 3 and Ford Focus appear to be far more costly compared to other areas of the world such as the UK.

The Federal Chamber of Automotive Industries or FCAI has taken these claims seriously and recently conducted a research study to determine if consumers had a reasonable argument for the existence of the Aussie Tax. The FCAI engaged IHS Automotive to research the pricing of a number of new cars in the Australian market and their equivalent models in the United Kingdom.

In a recent press conference, the FCAI announced the results of the research, which has determined that the Australian prices are in fact favourable compared to the UK market. This is good news for the constituent members of the FCAI, which includes car companies which build or import cars for the Australian market. The study has highlighted that the Australian market is highly competitive and has sixty seven brands competing for a greater market share across over three hundred and fifty models.

IHS Automotive conducted the research by comparing the pricing and specification of imported vehicles which are sold in Australia and the two other right hand drive market places. Using this research the FCAI further analysed the market, comparing models which were "like for like" with the same specification. This showed that in the vast majority of cases, the Australian models were cheaper compared to the same specification model in New Zealand or the United Kingdom.

The analysis compared the standard specification of models and the basic price before on the road costs were imposed within each market. In order to achieve consistency, the IHS UK figures were based on a conversion to the Australian dollar with an exchange rate of £0.55. This is the average of the exchange rate seen during the first six months of 2014.

Although some of the models were more expensive for the Australian market, in many cases, there was very little difference in price. However, the Australian price could see a marked inflation due to the imposition of Luxury Car Tax, which is applied to vehicles priced over $61,884.

This research has highlighted that the Australian market does offer consumers great deals. For example the Mazda 3 Neo, is available in Australia for $23,792, while it is offered in the UK for $31,405. Other notable examples include the Ford Focus Trend which is $32,325 in the UK while being $22,290 in Australia and the Toyota Corolla Ascent Sport, which is almost identically priced on sale in Australia for $23,540 and the UK for $24,250.

If you would like to learn more about great car deals on the Mazda 3 or other cars in the Mazda range, contact us. We have a comprehensive showroom of both new and used models. Our sales team would be delighted to answer any of your questions or arrange your test drive.

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