Is Labor’s Class Warfare Anti-Environment?

May 13, 2008 — 15 Comments

The new Labor led Australian Government will announce its first budget tonight and harking back to the class-warfare of the past, Labor is expected to increase taxes for the so-called rich, and at the same time reduce or remove non-means tested benefits such as the baby bonus.

I won’t spend the post writing about how the seriously rich hardly pay any tax anyway and that a couple earning $100k a year in Australia isn’t rich in an age of unaffordable housing and astronomical rents (for the record we pay $550/ wk for a 3×1 in Canterbury, VIC). Consider that the average weekly wage for men in Australia is now $1101, or $57,000 a year, and a women the average is $725/ wk ($37.7k/ yr), so presuming both couples work the average family with 2 people working brings home $95,400 per year. (source). So apparently Labor wants to strip away breaks and bonuses from average Australians.

But I digress, because I wanted to talk about the tax increase for so-called luxury cars. Labor thinks that “luxury” cars start at $57,000. WTF? It can cost $30-$40k (even more) to put an Australian built car on the road. 4WD’s, needed in regional areas and the bush are higher than this (indeed Land Cruisers can go as high as $100k), no luxury there.

But consider this: European cars are frequently offered in Diesel variations. It’s less common with other makes, although we are slowly seeing more diesel cars. What’s the one great trait of diesel powered vehicles: they are frugal on fuel use, resulting in less consumption of oil and less environmental damage. In the age of the great Global Warming scare, shouldn’t an allegedly green friendly Government be encouraging motorists to buy more diesel cars? Wouldn’t a tax break on cars based on fuel consumption be better than INCREASING taxes on these very same cars?

For the record I drive a 2003 Toyota Echo which I’ve owned since new, it does roughly 4.5l/ 100kms.