I’ve been playing around with Tesla pricing after investigating why Tesla’s are so expensive in Australia. As no surprise to anyone, it’s because of many taxes.
So I broke down the types of taxes I could find that Tesla is exposed, to see how they could reduce bureaucratic costs.
The main taxes are:
GST = General Service Tax – can’t do much about this. It’s a 10% tax applied to all purchases.
LCT = Luxury Car Tax – This tax was implemented to help protect the local car industry. Not a single car has been manufactured in Australia since 2017… This is calculated over the top of GST on any amount over $77565.
Stamp Duty = This is meant for property, I have no idea how this applies to cars. This is calculated over the top of GST and LCT, so it acts as a tax multiplier. It’s some archaic formula like $8.4 per $200 of the total price ¯_(ツ)_/¯
I used a Model 3LR as an example, but this would apply to and vehicle in this price range. I found by simply altering the base price to skirt around the LCT threshold, a cascade of saving from GST and Stamp Duty can be achieved.
$5000 might seem like a lot, but consider these prices are based on Fremont stock and out of date forex rates, most if not all of this could be recuperated taking into account once Australian stock starts shipping from Shanghai with lower manufacturing costs, transport costs and forex rates are adjusted for.
Somebody inform Elon!
What I learned is that if Tesla reduced a China made vehicle in the price range of the current M3LR by ~$5000, it would result in a retail reduction of nearly $8000 in Australia.