Bring in the cheap cars

Now that Ford, Holden and Toyota have all announced that they will cease production of cars in Australia we no longer need to protect a local car industry, Will we finally be able to buy cheaper cars in Australia?

Let compare prices of some common cars:
http://www.redbook.com.au/
http://autos.yahoo.com/
http://www.parkers.co.uk/

	AUS (AUD)	US (USD)	UK (UKP)		US (AUD)	US Ratio	UK (AUD)	UK Ratio
Kia Sportage	$25,490	$26,900	$15,790		$29,789	0.86	$25,953	0.98
Hyundai i30 / Elantra	$20,990	$16,965	$11,455		$18,787	1.12	$18,828	1.11
Toyota Prius	$33,990	$24,200	$21,816		$26,799	1.13	$35,858	0.95
Nissan 370Z	$56,930	$29,990	$22,741		$33,211	1.27	$37,378	1.52
VW GTI	$41,490	$25,095	$23,832		$27,790	1.33	$39,172	1.06
BMW 320	$58,600	$32,750	$26,476		$36,267	1.49	$43,517	1.35
Jeep Grand Cherokee	$43,000	$29,195	$34,165		$32,331	1.62	$56,155	0.77
VW Touareg	$63,990	$51,035	$38,735		$56,516	1.63	$63,667	1.01
Audi A6	$77,900	$43,100	$29,424		$47,729	1.69	$48,363	1.61
Porsche Boxster S	$131,490	$62,100	$48,034		$68,770	1.71	$78,951	1.67
BMW X5	$99,000	$52,800	$47,895		$58,471	1.91	$78,723	1.26
Jaguar F V6 S	$171,045	$81,000	$67,520		$89,699	1.91	$110,980	1.54

*Exchange rates: 1 USD = 1.1074 AUD, 1 UKP = 0.6084 AUD
** Please note UK prices include 20% VAT

Why are car prices significantly more expensive in Australia than in US or UK? Some of the costs are government taxes and tariffs:
http://www.customs.gov.au/site/page4371.asp
To import a car to Australia attracts the following costs:

• Import duty of 5% (max)
• GST of 10%
• Luxury Car Tax of 33% for cars over $60,316

Australian car prices are far higher than governments costs. The price differences between US/UK and Australia are a result of market conditions. However, what must be asked, is does the car industry collude to make the prices higher.  If there is collusion then this must be against the law as its anti competitive.  There is one very simple way to open up the market and this is to bring the Australian car compliance into line with the European standard (this is gradually happening).  European regulations are very tough and are beginning to be accepted as an international standard.  Once this occurs and the government opens the door to "grey imports" then we can simple buy our cars from the UK and have them shipped across. The European market is vast compared to ours thus prices are much lower than ours, also the European union will impose massive fines (and have) on car manufacturers who inflate prices in certain member countries. The government would not loose tax as 5% import duty, 10% GST and LCT would still be collected on the invoice price at the arrival port. With ability to easily import cars to Australia  people will begin to source more and more products from abroad, this will then force market prices lower in Australia and we will meet a happy equilibrium and we will all be paying less.  

In short accept Australia needs to accept the European international standards set by the United Nations Economic Community for Europe (UNECE).  We then need to allow grey imports of all compliant cars thus opening us to a global market of 100s of millions.  This won't destroy our dealer network as they will quickly jump in line and our car prices will suddenly fall by 30%+.  People will always prefer to buy from a dealer than abroad.

Honda has already called for ADR/EU alignment:
http://www.goauto.com.au/mellor/mellor.nsf/story2/96FEBE205942DA29CA2575900007E932
"HONDA Australia senior director Lindsay Smalley has called on the Australian government to bring Australian Design Rules (ADRs) into line with European regulations.

Current ADRs added unnecessary complexity and cost, ultimately paid for by the new-car buyer.

He suggested that much of the necessary ADR work was not needed, especially when manufacturers had already engineered their vehicles to meet or exceed virtually identical standards under European crash and/or safety regulations."


Australian Design Rules:
http://www.infrastructure.gov.au/roads/motor/design/

Government is already planning to move to European design rules:
http://ris.finance.gov.au/files/2012/03/03-Harmonisation-of-the-ADRs-RIS.pdf

If you import car from UK you can get 20% VAT refund:
http://www.acesales.eu/how-tax-free-cars-work.php

Another review of car prices around the world:
http://www.caradvice.com.au/250589/australian-car-buyers-getting-ripped/

Shipping Calculator from UK to Australia:
http://www.carshipping.co.uk/australia/australia-shipping-worthwhile.html

Current process of importing car from UK to Australia:
http://www.moving-to-melbourne.co.uk/news/574/general-australian-news/importing-a-car-to-australia/