Retirement Income

Tue, 26 Jun, 2018Danielle McCarthy

Sneaky tax grab threatens to destroy retirement dream of thousands of Australian seniors

Sneaky tax grab threatens to destroy retirement dream of thousands of Australian seniors

A new “greedy” tax on luxury vehicles, including motorhomes, is threatening to destroy the retirement dream of many Aussie grey nomads.

In Queensland, the government’s two-per-cent levy could bump up the price of campervans by nearly $10,000.

The Queensland government's tax will apply to vehicles that are worth more than $100,000 and weigh less than 4.5 tonnes – a category that most campervans fit into.

Companies have spoken out against the tax as they believe it will deter many potential customers and force many retirees to walk away from their dream of affording a holiday vehicle.

Pensioner Alan Dawes purchased his motorhome five years ago but said he wouldn’t have been able to make the same purchase in the 2018 market.

“If I was buying this vehicle now, it would affect me by about $9,000. Which makes it out of reach for a lot of people,” Mr Dawes told Nine News.

Opposition Leader Deb Frecklington accused the government of a greedy tax grab on grey nomads.

"They've paid their taxes and now, when they're in the prime of their life when they want to get out and enjoy this beautiful state, they're going to be slugged even more," she said.

Some retailers are concerned they could lose out if they are forced to cover the tax on campervans they have already sold.

"If I don't pass it on, which I can't ... it will cost myself and my partner $96,000," John Burke from Explorer Motorhomes explained.

Caravanning groups are worried the tax could have a greater impact on tourism in country Queensland.

"80% of tourism out there at this time of year is in caravans and motorhomes," the CEO of Caravanning Queensland, Ron Chapman, said.

“If people can't buy them and keep going around Queensland, then we're in strife."

The government said caravans and trailers will be exempt from the tax.

"But if it is one of those luxurious vehicles then it might attract some duties," said Premier Annastacia Palaszczuk.

What are your thoughts on this luxury vehicle tax? Let us know in the comments below.