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Discussion Starter · #1 ·
It's about time they've done this!

Stamp duty on car sales to rise
May 30, 2007 - 12:00PM


Queensland car buyers will fund a $528 million increase in mental health spending through increased stamp duty on vehicle sales, with V8s costing most and fuel-efficient hybrids least.

Under the measure, to be included in next week's budget, the motor duty levy will be raised from two per cent of the purchase price to three per cent for four-cylinder vehicles, 3.5 per cent for six-cylinder vehicles and four per-cent for V8s.

Premier Peter Beattie said the extra tax meant buyers would pay an extra $220 in duty on a $22,000 four-cylinder Toyota Corolla while duty on a $38,000 Holden Commodore would increase from $760 for a six to $1,330 for a V8.

But the duty on hybrid cars would remain at two per cent to encourage more motorists to take up the environmentally friendly option.

He said the tax increase was necessary to pay for additional funding for mental health services for the state which has one of the highest suicide rates in the country.

"Queensland has underfunded mental health for too long, we can't continue to have a higher percentage - 14 per cent higher when it comes to suicide - than the national average," Mr Beattie said.

However, he said even with the additional funds the state's mental health spending would only be 85 per cent of the national average.

"We only moved it five per cent, but if we hadn't done this it would have gone backwards," he said.

Treasurer Anna Bligh said the tax increase was expected to raise an additional $200 million a year which would cover the increase in mental health spending of $528 million over four years.

However, she said the stamp duty increase would be the only additional tax included in next Tuesday's budget.

She also indicated the budget would remain in surplus.

"This does mean a small revenue increase but frankly it's modest, its prudent and it means we can see increased services that Queensland deserves without the budget going into deficit," she said.

"If we want national levels of service delivery we've got to bite the bullet on some areas of revenue without losing our competitive tax status."

Ms Bligh said Queensland would remain the lowest taxing state in Australia and indicated the budget would offer relief for taxpayers in other areas.

"There will be other other areas of the budget where we will be looking at some moderation of tax," she said.

AAP
 

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I'm surprised Beattie is even announcing policy atm.

Its pretty obvious that Rudd has told his Labor State Leaders (the most unpopular Iemma, Beattie and Carpenter) not to anger the public or embarrass him.

This is the most obvious in NSW.
 

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this is a great thing, it's abouyt time that people were given incentives to buy more efficient vehicles. i'm not sure about the connection with mental health though.
 

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Discussion Starter · #7 ·
^^That was just their way of saying that the money was going to something beneficial and something extra.
 

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this is a great thing, it's abouyt time that people were given incentives to buy more efficient vehicles. i'm not sure about the connection with mental health though.
Traffic congestion driving people mad perhaps e.g. road rage?
 

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^ not if they also increase registration tax for larger capacity cars, then it may force people into smaller more efficient cars.
 

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All states should do something like this. Councils should also charge larger cars more for street parking permits, after all they take up more parking space.

They are already doing this in North Sydney.
 

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I don't quite follow the logic here? You increase only stamp duty on the sale of cars (so people with current old heaps of shit are deterred from buying the new equivelant of what they got) and then you spend the money on something completely unrelated to the issue you are trying to solve?!?

I'd say increase rego on less efficient cars, bonuses for more efficient cars and put the extra funds into pulic transport.

Mental health is important to but if the higher stamp duty does its job and get those cars off the road how do you fund mental health.

Piss poor lack of basic economic rationale and reasoning.
 

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Governments aren't exactly leading by example, most minister cars are all V8's, council cars are mostly 6's (I have noticed alot of them are now sportier variants), police/authority cars are all 6's and 8's. Meh, another reason not to vote for Beattie this time around.... I was looking forward to my very first brand new car, now I gotta save up longer to get it, thanks very much...

Probably would be so bad if it wasn't for Mental Health, surely heavier tax on cigerettes or something would be more suitable to the cause - if teh money was for transport infrastructure or similar then fine, no problem with that.
 
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