Australian taxpayers lost out on a quarter of a billion dollars in revenue in 2023 thanks to a generous tax loophole for "big, dumb" American-style utes, a report says.
Large utes such as those made by Chevrolet and Ram are being subsidised as they are exempt from the Luxury Car Tax while contributing to higher carbon emissions, road damage and serious safety concerns, according to a report by think tank the Australia Institute.
The "loophole" cost the Australian public $250 million in foregone revenue in 2023 alone, while other imported cars valued above $81,000 continue to be subject to the tax.
