Western Australian caravan buyers can save $2600 on a $40,000 caravan from July 1 thanks to the State Government exempting caravans from State duty from that date.
On a $20,000 purchase, the saving is $700; at $30,000 its $1,500 and at $40,000 the saving is $2,600. Western Australia follows Victoria's lead not to impose stamp duty on caravans.
Recreational Vehicle Manufacturers Association of Australia (RVMAA) President Tony Bellamy said that the exemption is a great thing for the recreational vehicle industry and for Western Australian tourism.
We would now like to see all States adopt a similar exemption, Tony Bellamy said.
Clearly the Western Australian Government recognises the value of caravanning to rural and regional communities. People who own Recreational Vehicles travel and holiday in these communities and are major contributors to local economies, he said.
As Victoria has had no stamp duty for some time, and with Western Australia doing the same its time other states followed suit. Stamp duty exemptions across all States would help protect and encourage the Australian Recreational Vehicle manufacturing sector and increase RV ownership, with the natural flow-on a benefit to regional Australia through increased domestic tourism, he said.
Tony Bellamy said that the RVMAA will make submissions to the other States to follow both the new WA Government exemption and the Victorian example.
While Tony Bellamy admits that it is unlikely that Governments could be encouraged to only exempt Australian made models, he is confident that the quality of Australian product is such that we can take on all comers.
An industry spokesman says a check with three recreational vehicle dealers in the Brisbane region has found that a new caravan depreciates about 20 percent in the first year, and then a further three to four percent for another two years.
After that for a further five years the balance is likely to remain static, so trade-in after five to seven year is the best period to maximize a return on the initial caravan investment.
Editor's Note: Victoria's vehicle stamp duty regime changed on May 1 after about two decades
Cars which cost between $35,000 and $45,000 attract 2.5 per cent stamp duty instead of the former 4 per cent, saving a maximum of $675.
More expensive cars worth between $45,000 and $57,007 are taxed at 2.5 per cent, instead of the old 5 per cent, saving up to $1425. But cars worth less than $35,000 will continue to be taxed at the rate of 2.5 per cent.
The Melbourne Age reported that Royal Automobile Club of Victoria spokesman Michael Case said the move would help more people buy the latest safety features such as electronic stability control and curtain side airbags rather than scrimping to avoid higher rates of duty.
The chief executive of the Victorian Automobile Chamber of Commerce, David Purchase, said the decision would increase the affordability of new cars.
The stamp duty cut is funded by scrapping subsidies of 0.43 cents per litre for petrol and 0.75 cents per litre for diesel, paid by the State Government to the five major oil companies, The Age said.