Good news for tax payers
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Stephen Walker
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by Stephen Walker
28th January, 2011
Good news for tax payers at last!
- Commonwealth Government to abolish Green Car Innovation Fund
- LPG rebates to be capped
- Cleaner Car Rebate Scheme to be dropped
As a result of new taxation arrangements to implement reconstruction of damaged infrastructure in
flood effected regions of the nation the Prime Minister, Julia Gillard, has announced several
aspects of the Commonwealth government's budget have been scrapped or amended to enable the
reallocation of expenditure to assist storm damaged Australia. Some of the changes relate to
expenditure that unnecessarily benefited the car industry.
With the nation's automotive industry booming (over one million new vehicles were sold in
Australia last year -
more)
and with the global automotive industry recovering extremely well from the so-called "Global Financial
Crisis", there appears to be no good reason to channel hard-earned tax payer monies to large
financially capable car manufacturers who continue to enjoy the benefits of a successful enterprise.
Green Car Innovation Fund
But those who encourage the "corporate dole" are not amused!
For example, the Federal Chamber of Automotive Industries (FCAI), Australia's peak automotive body,
is disappointed at the Government’s decision to abolish the Green Car Innovation Fund.
Their Chief Executive, Andrew McKellar, said “It is a bitterly disappointing decision and one
which is to be regretted”.
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Self-Catering Holiday
Accommodation in
Denmark, WA
..... more
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However, it seems obvious that if all governments around the world ceased granting funds to large
successful companies then not only will tax payers be better off, but so too will the car companies
themselves as they will be able to concentrate on their business rather than trying to 'rustle' up money
that isn't theirs.
Up to $234 million may be saved by the government's decision during the financial years 2012 through
2015.
LPG rebates
This beneficial scheme which effectively promotes the use of liquid petroleum gas as an alternative fuel
source will be 'capped' to 25,000 claims each financial year, commencing 1st July 2011. This scheme is
scheduled to conclude 30th June, 2014.
Cleaner Car Rebate Scheme to be dropped
This new, as yet unimplemented, scheme was to grant $2,000 to each car owner who traded-in a pre-1995
vehicle on a new fuel efficient car (conditions were to apply). However, with the new car industry
operating at a maximum success rate it seems absolutely unreasonable to provide any incentives to the car
industry, as old cars are being replaced in the natural course of business. Therefore, the decision to
drop this unnecessary rebate seems to be a very good decision by the government. This initiative will
benefit the reconstruction process by $429 million over the next four years.
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