This proposal contains 16 options to alter motor vehicle taxation in Australia.

Options 1 to 4 would reduce the standard luxury car tax (LCT) threshold to $57,180, and subsequently index the standard LCT threshold in line with the motor vehicle component of the consumer price index (CPI), with the following definitions of fuel‐efficiency for LCT purposes.

• Option 1: The definition of fuel‐efficiency would remain unchanged at seven litres per 100 kilometres.
• Option 2: The definition of fuel‐efficiency would be narrowed to four litres per 100 kilometres.
• Option 3: The definition of fuel‐efficiency would be narrowed to two litres per 100 kilometres.
• Option 4: The definition of fuel‐efficiency would be narrowed to zero litres per 100 kilometres.

Options 5 to 8 would reduce the standard LCT threshold to $59,133, and subsequently index the standard LCT threshold in line with the motor vehicle component of CPI, with the following definitions of fuel‐efficiency for LCT purposes:

• Option 5: The definition of fuel‐efficiency would remain unchanged at seven litres per 100 kilometres.
• Option 6: The definition of fuel‐efficiency would be narrowed to four litres per 100 kilometres.
• Option 7: The definition of fuel‐efficiency would be narrowed to two litres per 100 kilometres.
• Option 8: The definition of fuel‐efficiency would be narrowed to zero litres per 100 kilometres.

Options 9 to 12 would reduce the standard LCT threshold to $63,184, and subsequently index the standard LCT threshold in line with the motor vehicle component of CPI, with the following definitions of fuel‐efficiency for LCT purposes:

• Option 9: The definition of fuel‐efficiency would remain unchanged at seven litres per 100 kilometres.
• Option 10: The definition of fuel‐efficiency would be narrowed to four litres per 100 kilometres.
• Option 11: The definition of fuel‐efficiency would be narrowed to two litres per 100 kilometres.
• Option 12: The definition of fuel‐efficiency would be narrowed to zero litres per 100 kilometres.

Option 13 would remove import tariffs on all battery electric vehicles, plug‐in hybrid electric vehicles and hydrogen fuel cell electric vehicles imported into Australia.

Option 14 would remove the goods and services tax (GST) on all battery electric vehicles, plug‐in hybrid electric vehicles and hydrogen fuel cell electric vehicles sold in Australia.

Option 15 would remove stamp duty on all battery electric vehicles, plug‐in hybrid electric vehicles and hydrogen fuel cell electric vehicles sold in Australia.

Option 16 would remove vehicle registration charges on all battery electric vehicles, plug‐in hybrid electric vehicles and hydrogen fuel cell electric vehicles sold in Australia.

Additional information on the number of vehicles currently liable to pay the LCT, split between standard vehicles and fuel‐efficient vehicles, was also requested.

All options in the proposal would have effect from 1 July 2019.