Reduce Car Taxes, Reduce Road Crashes

December 21, 2017 Taxation in Australia

car taxCANBERRA – If Australia dropped its car import tax, the national road toll would drop.

New research released by the Australian Automobile Association (AAA) has indicated that dropping taxes on car imports in the country will lead to a reduced road roll and will save healthcare expenditure.

Australia currently has an unusually old car fleet for a developed country, and the state and technology of the cars result in a disproportionately high road toll.

The average age of a passenger vehicle in the country is 9.8 years, while light commercial vehicles are an even older 10.4 years.

If the age of the fleet was reduced by even 1 year, road crashes would be reduced by 5.4 percent, and lead savings of 3.3 billion in healthcare costs over the coming 20 years.

The reduction in the age of the car fleet could be achieved by dropping the 5 percent tax levied on the import of vehicles and the end of the Luxury Vehicle Tax.

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