Thirsty cars will soon become cheaper under changes to the controversial luxury car tax.
But fuel-efficient vehicles – including electric and hybrid cars – will not benefit as much. The federal government announced that the price at which the 33 percent tax kicks in will rise to $64,132 (up $948) for cars that use more than 7.0L/100km, translating to savings of about $285. In contrast, the LCT threshold on fuel-efficient models will rise by just $151. So those looking to buy a BMW i3, Tesla or hybrid luxury car will only save about $45.