Budget 2023: How car buyers will be affected

The government has just released their FY2023 Budget Statement! There will be minor changes to the taxation structure of cars locally, with alterations aimed at higher-end vehicles.

Cars with Open Market Value (OMV) of between $40,000 and $60,000 will have a tax rate of 190 per cent, with those $60,000 to $80,000 at 250 per cent, and cars that are worth more than $80,000 on the Open Market being slapped with a tax of 320 per cent. Preferential additional registration fee (ARF) rebates will also be capped at $60,000.

The revisions have been put in place to target premium vehicles. Using an Audi e-tron SUV as an example, the pre-revision ARF payable inclusive of government rebates is $42,000. As its OMV is $64,000, the resultant new payable sum under the revised scheme is now $52,000.

With high COE and registration costs, it's perhaps time to look at a used car if you desperately need a set of wheels to call your own!

This article was first published in Motorist.

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