Local car producer Toyota has renewed calls for Australia's luxury car tax to be scrapped.
From July 1 the tax will be applied to all cars selling for $59,133 or more, an increase of $1667 in the threshold.
But Toyota said while the rise in the threshold offered some relief for buyers, the tax remained inefficient, punitive and a poorly designed measure.
"It is discriminatory because it applies only to vehicles and the arbitrary threshold is not set at a level that most people would consider a luxury car," executive director of sales and marketing Matthew Callachor said in a statement on Friday.
"Not only that, it is a tax on a tax. Motorists already have to pay GST, stamp duty and registration fees when buying a new car, as well as a hefty tax on petrol."
Mr Callachor said the adjustment in the tax would result in a $500 price cut to 20 Toyota models and the company would pass the savings on to buyers.