Interesting point about imports now.

[2011G6E]

Saw a comment online, and a couple of guys at work mentioned something, that is a point I hadn't realised about the finishing up of manufacture of locally made cars.

Basically, they said the following:
If locally made cars are going to be gone, and all our cars are going to be imports...then logically there's no further need for import taxes and protectionist tariffs and these should be removed once local manufacture winds down and finishes. I mean, seeing as how we could no longer purchase Australian-built cars, there's no need for the taxes and tariffs, is there?

Of course it won't happen, but it's nice to dream.

It does make a good point though...why have tariffs and taxes on imported cars just to "protect" something that no longer exists...?

[SB076]

I suspect once the industry has gone our dollar will decrease (unless mining can do something extraordinary).and you will pay more for imported cars. I did read something about removing taxes on grey imports

[jpd80]

Import Tariffs are now at 5% but no tariffs exist with FTA partners like Thailand and now Korea...

[imugli]

I actually won't be surprised if the tariffs get abolished completely. With FTAs in place with Thailand and Korea, and talks about a Japan FTA about to start, the only region left will be the EU, which I would imagine makes up smaller number of auto imports compared to Japan, Korea and Thailand. Really not much point in keeping it.

[mif73]

Certain motoring groups are pushing for abolishing the measly 5% tariff immediately, but they have forgotten that people are still employed and making cars here until 2017 (hopefully) so removing the tariff right now would only bring the closures sooner.

As for the price of imports once we stop making cars, we might find that prices go up slightly as we have 3 less models here to choose from (any competition is better than none) and the importers will take advantage of it.

[Road_Warrior]

Originally Posted by mif73

Certain motoring groups are pushing for abolishing the measly 5% tariff immediately, but they have forgotten that people are still employed and making cars here until 2017 (hopefully) so removing the tariff right now would only bring the closures sooner.

Yes I saw that too. Why can't these morons wait until the car makers have finalised production? They finally got their way so another couple of years won't really matter, but clearly they'd like to see people out of work sooner.

FTA with Korea and Japan will basically make tariffs redundant in any case.

[imugli]

Originally Posted by mif73

Certain motoring groups are pushing for abolishing the measly 5% tariff immediately, but they have forgotten that people are still employed and making cars here until 2017 (hopefully) so removing the tariff right now would only bring the closures sooner.

As for the price of imports once we stop making cars, we might find that prices go up slightly as we have 3 less models here to choose from (any competition is better than none) and the importers will take advantage of it.

None of those models actaully compete with any of the imports though, except for maybe the Chrysler 300 and the new Hyundai Genesis. Other than that, you're still going to have cutthroat competition in the small car sector, the CUV and SUV sectors, the medium car segments (which may just go on the offensive given they'll try to pick up the large car buyers). It's going to be much of a muchness price-wise IMO.

[Jacko*]

I have a question for our Cuzzy Bro's across the ditch. Is there a reason why New Zealanders are able to import just about whatever make & model of vehicle they want? Just curious, we had a family holiday over there a little while ago & I noticed many of what we would call grey imports over there. I figure the Australian government must have more strict rules when it comes to imports. Thought I'm not sure if that's about protecting our car industry or possibly a design rule, or safety related issue.

[Cheech]

Once Australian manufacturing of cars ceases then an importer can apply for a tariff concession (TC) to be granted.

A tariff concession is legislative instrument that can be granted where comparable goods are not manufactured within this country and no company is prepared to accept an order to manufacture those goods..

EG. the tariff on golf clubs is 5% however, there is a TC specifically for that item that reduces the duty to zero.

Jacko, Australia makes it almost impossible to do a personal import unless you've owned it and used it overseas for 12 months or the vehicle is pre 1989 build.
The majority of "grey" imports here are currently imported by registered Australian workshops under the RAWS scheme. Where the workshops are licensed to comply certain car models with Australian standards.

Cheech (Licensed customs broker)

[Hulsty]

So once the manufacturing here stops and the government loses heaps of revenue you want them to loose even more revenue by dumping tariffs? Not gonna happen.

[rancidpunx]

Originally Posted by Jacko*

I have a question for our Cuzzy Bro's across the ditch. Is there a reason why New Zealanders are able to import just about whatever make & model of vehicle they want? Just curious, we had a family holiday over there a little while ago & I noticed many of what we would call grey imports over there. I figure the Australian government must have more strict rules when it comes to imports. Thought I'm not sure if that's about protecting our car industry or possibly a design rule, or safety related issue.

Australia also has the nanny no left hand drive blanket rule for new vehicles. New Zealanders are allowed to drive left hand drive vehicles over there so opens up a lot of import options especially from America.

[Bulletime]

Saw something that said govt makes about 1 billion from the tariff so they'll just recoup that somewhere else so while it might happen someone's still gonna be paying

[Nikked]

Apparently the government made "billions" on imports...


So, why no protect our industry???

[Davehoos]

Kiwi had to be a bit more switched on than here in OZ.
Small market with wide range of needs--sort of like OZ. with no cash.

not only do they let you import but they give you assistance to manufacture import replacement parts.

In OZ tariffs will go-- then they will be replaced with sales tax of some type.
luxury tax green tax strange badge tax.

[FPV GTHO]

Watch the rego go up when tariffs disappear.

[data_mine]

lol to all the ricers and eurotrash lovers that think we'll all be getting $80,000 M3's and GTR's. like the extortiate pricing we get here is going to disappear. fact is the amount of import taxes and duties and LCT etc. do not explain why a M3 is 180k here, and not 70k like in UK/US.

All we'll be left with is, expensive imports, and no local alternative, and 100,000+ jobless.
yay!

[XR Martin]

Originally Posted by FPV GTHO

Watch the rego go up when tariffs disappear.

Rego goes to the State Gov, Tariffs go to the Federal Gov.

So there is no real link between the two.

[Blem]

My only concern is that the Fed gov does NOT drop any car tariffs until we NO longer manufacture cars here.
Otherwise current manufacturers will pull out even faster due to even more fierce pricing/undercutting.

[turbodewd]

We have a federal budget deficit, if we no longer make cars then we should slap a tax on them to raise revenue because they are our 3rd or 4th biggest import. We arent here to line the pockets of foreign companies, esp with unemployment now at a 10-yr high and trending higher :^(

[danzvtil]

the feds are sweating on balancing the budget at the moment, and loosing the $1bn they make from tarrifs, wont be palatable. Whether they are dropped tomorrow or in 3yrs time makes no difference to how few aussie made cars will be sold between then.

[XD 351 Ute]

Originally Posted by data_mine

All we'll be left with is, expensive imports, and no local alternative, and 100,000+ jobless.
yay!

At least we won't have to suffer the commoners driving all those horrible Australian cars..........
At least the taxpayers won't have to cough up year after year to 'carry' the auto manufacturing industry any more............

Forest for the trees...............

Ed

[mif73]

Originally Posted by XD 351 Ute

At least we won't have to suffer the commoners driving all those horrible Australian cars..........
At least the taxpayers won't have to cough up year after year to 'carry' the auto manufacturing industry any more............

Forest for the trees...............

Ed

Yes what will bogans of the future drive ?
What cars will we see southern cross stickers on?

[Burnout]

Tariffs are a handy form of indirect tax. The Government will keep them for a looooonnnnggg time. The car sales industry in Australia is so fragmented by so many brands that they have stuff all influence over government in Australia.
Tariffs are here to stay.

[Rodge]

Kiwi's enjoy tariff free imports from any country in the world because we're an open market that encourages and fosters free trade. We don't block our so called closer economic relations trading partners produce from supermarket shelves.
The net benifet to Kiwi's is we can import cars from the U.K. anmd cut out the extortion that Euro distrubutors try and get away with through official channels.
Who wouldn;t mind a demo 2013 Jaguar XFR for $A100K ?

[chevypower]

Originally Posted by Rodge

Kiwi's enjoy tariff free imports from any country in the world because we're an open market that encourages and fosters free trade. We don't block our so called closer economic relations trading partners produce from supermarket shelves.
The net benifet to Kiwi's is we can import cars from the U.K. anmd cut out the extortion that Euro distrubutors try and get away with through official channels.
Who wouldn;t mind a demo 2013 Jaguar XFR for $A100K ?

Free market is the only way to go!

[turbodewd]

Originally Posted by chevypower

Free market is the only way to go!

I disagree strongly. Its like MMA or boxing with no divisions...the heavyweight would probably win. The USA subsidizes its farmers to absurd levels and the USA slaps a 25% tariff on imported trucks.

Id rather win trade than have free trade. Its this blanket mantra "free" which sounds fair and just doesnt it. But it only suits those who are good at trade.

There is ZERO reason why little Australia should try to play with the big boys of Japan, USA and Germany. We need to pick and choose our industries.

Now it just so happens that the auto sector is in our top 3 for imports, ergo if we tax them we are harming no Aussie industry anymore. 20% GST on cars gets my vote. We need not line the pocket of foreign companies.

Anyone who believes free trade is fair is deluded. Business/trade isnt about making friends, its about crushing the competition by any means necessary.

[Road_Warrior]

Originally Posted by chevypower

Free market is the only way to go!

Yeah if you're the one controlling the so-called "free market".

[nstg8a]

It all comes down to the individual fta's.

NZ economy is now recovering well and is tipped to out perform Australia very soon. (On a per capita basis of course)
Al ready the dollars are at closer to parity than they've been in a long time.

The imports came about because the NZ motoring scene was made up of expensive Aussie and British imports that were basically obsolete when they got there.
Once they stopped local assembly they were at the mercy of the big importers. (Sound familiar?)

Opening up imports allowed the average age of cars to decrease massively which lead to significant gains in safety, fuel economy etc, and meant lower income families could afford modern vehicles.

From what I understand they have tightened up the import rules significantly and it's now a lot harder to import older vehicles.

[mif73]

Originally Posted by chevypower

Free market is the only way to go!

The so called free market contributed greatly to kill our local car industry so i would say its not the way to go for oz anyhow.

[Nikked]

The thing is...these Euro imports, they are expensive for a reason, to put them in a price bracket so that people can afford them...

Remember that affordability is just the initial layout of the car, its the continual servicing, parts etc that you encounter during the ownership. I'd just hate to see Joe blow purchase a M3 "because its cheap now" then can't afford to take the car to a BMW dealer because a light bulb has failed (seriously, they aren't easy to get to...cost 100's for a bulb...and quite often the part it superseded etc etc...)


Luxury cars for luxury life styles...

And having said that, they obviously are not that far out of reach, considering the amour you see these days....