Following the re-election of the Albanese Labor Government in May 2025 there has been an increase in focus to renew negotiations for a Free Trade Agreement (FTA) with the European Union.
This has included public commentary that the Australian Government is open to considering removal of the Luxury Car Tax (LCT) as part of the negotiations.
The FCAI has had several meetings with members of the Government, and the bureaucracy, to understand the progress of this work and has offered to support their objectives to secure a positive outcome.
The FCAI has previously advocated to the Government for the removal of the LCT given the impact on automotive sales. We believe there is now a genuine appetite to remove the LCT to support negotiations on the EU FTA.
There is still a significant amount of work to be done from both sides of the negotiations, but the FCAI will continue to advocate for members where possible.