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Let’s take a look at effects of the Australia Tax on a range of luxury and 'everyday' vehicles below
| Car | Price AUD | Price USD | AUD Equiv | Difference | Percentage | Manufactured in |
|---|---|---|---|---|---|---|
| 2014 Aston Martin Vanquish | $570,000 | $309,590 | $399,987 | $170,013 | 29.83% | England |
| Ferrari 458 | $576,072 | $269,903 | $348,712 | $227,360 | 39.47% | Italy |
| Mercedes-Benz SLS AMG Black Series | $639,000 | $229,005 | $295,872 | $343,128 | 53.70% | Germany |
| Rolls-Royce Wraith | $778,500 | $289,100 | $373,514 | $404,986 | 52.02% | England |
| Rolls-Royce Ghost | $489,000 | $267,800 | $345,995 | $143,005 | 29.24% | England |
| Bentley Mulsanne | $630,000 | $310,125 | $400,678 | $229,322 | 36.40% | England |
| Lamborghini Aventador | $795,000 | $400,995 | $518,081 | $276,919 | 34.83% | Italy |
| Rolls-Royce Phantom | $999,444 | $408,040 | $527,183 | $472,261 | 47.25% | England |
| 2014 Porsche 911 GT3 | $330,000 | $131,395 | $169,761 | $160,239 | 48.56% | Germany |
| Tesla Model S P85+ | $127,800 | $69,900 | $90,310 | $37,490 | 29.33% | USA |
| 2015 Commodore SS | $43,990 | $49,440 | $63,876 | -$19,886 | -45.21% | Australia |
| Toyota 86 | $36,955 | $26,075 | $33,689 | $3,267 | 8.84% | Japan |
| Subaru BRZ | $37,150 | $29,695 | $38,366 | -$1,216 | -3.27% | Japan |
| Ford Fiesta | $20,990 | $15,595 | $20,149 | $841 | 4.01% | Thailand |
| Toyota Corolla | $23,409 | $19,790 | $25,568 | -$2,159 | -9.22% | Japan |
| Hyundai Elantra | $18,990 | $17,250 | $22,287 | -$3,297 | -17.36% | South Korea |
| Ford Focus | $19,990 | $23,670 | $30,581 | -$10,591 | -52.98% | Thailand |
| Kia Rio | $25,011 | $18,290 | $23,630 | $1,381 | 5.52% | Indonesia |
| Volkswagen Jetta TDi | $36,990 | $26,410 | $34,121 | $2,869 | 7.75% | China |
| Volkswagen Golf TDi | $35,990 | $28,395 | $36,686 | -$696 | -1.93% | Germany |
| Toyota Camry Hybrid 2.5L | $34,990 | $27,995 | $36,169 | -$1,179 | -3.37% | Australia |
| Holden Cruze | $26,918 | $20,095 | $25,963 | $955 | 3.55% | China |
| Honda Civic | $34,023 | $24,340 | $31,447 | $2,576 | 7.57% | Thailand |
| Volvo S60 | $76,817 | $34,890 | $45,078 | $31,739 | 41.32% | Belgium |
| Toyota RAV4 | $37,154 | $30,735 | $39,709 | -$2,555 | -6.88% | China |
| Toyota Land Cruiser | $119,450 | $81,475 | $105,265 | $14,185 | 11.88% | China |
| Lexus IS250 | $59,648 | $39,085 | $50,497 | $9,151 | 15.34% | Japan |
| BMW 328i | $69,990 | $41,500 | $53,618 | $16,372 | 23.39% | Germany |
| BMW 528i | $115,856 | $52,900 | $68,346 | $47,510 | 41.01% | Germany |
| Mazda3 Touring | $28,467 | $25,095 | $32,422 | -$3,955 | -13.89% | Thailand |
| Nissan Altima | $33,336 | $23,385 | $30,213 | $3,123 | 9.37% | Japan |
| Nissan 370z | $62,091 | $29,990 | $38,747 | $23,344 | 37.60% | Japan |
| Mini Cooper S | $41,857 | $21,700 | $28,036 | $13,821 | 33.02% | United Kingdom |
| Toyota Prius | $36,490 | $24,200 | $31,266 | $5,224 | 14.32% | China |
| Volkswagen Beetle | $34,957 | $20,695 | $26,738 | $8,219 | 23.51% | Vietnam |
It’s no shock to any Australian that when it comes to paying for things, the numbers next to AUD tend to be exorbitantly inflated when compared to other currencies. Cars, technology, clothing, cosmetics – they all fall under what’s been coined the ‘Australia Tax’, and it can see anywhere between 10-80% being added to the price of your goods. The Tax doesn’t just affect things purchased from overseas. Anything made by a company that has international operations, that sources or manufactures products internationally, or that engages in any kind of import or export for their finished products, labour or materials, can be expected to markup the price when selling to Australians. When it comes to cars, the price is high no matter which way you look at it – but with the Australia Tax added on the prices can jump in upwards of 50%.
Both luxury and 'everyday' vehicles feel the Australia Tax pinch.
If we look at a Mercedes-Benz SLS AMG Black Series, it’s a hefty $639,000 if you buy in Australia. But in the US it’s a much more manageable $229,005, the equivalent of $295,519 in AUD. That’s a price hike of 53.75%. If you consider a more everyday vehicle, the Toyota Prius, you'll be paying an extra 14.32% if you buy the car in Australia.
The Australia tax is usually blamed on shipping, customs and GST, but can that really increase the price of the Mercedes-Benz Black Series $343,338?
Presuming you want to purchase a vehicle with a large difference in price. Would there be any benefit in buying it overseas and importing it yourself. Bearing in mind cost of shipping and taxes and cost of conversion to right hand drive.
Hi Keith,
Thanks for reaching out.
When weighing the benefits of just buying a car locally vs. importing one, for sure there’s a difference. Not only in the cost it will differ but also the process of importation can be a bit more complicated than just purchasing one locally. You may like to check the following guides on importing and buying a car:
I hope this can somehow help you with your decision.
Cheers,
May