DJRBrisbane

The price differences between europe 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 anticompetitive. 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 (eg this was once the case in the UK). 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. I think over the next few years with the stronger Aus currency 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. The car market is currently protected in Australia as you cannot import a car which is sold in volume in Australia. You can however import low volume cars such as certain Japanese models, Aston Martins etc.. Interestingly you can actually buy a new Aston Martin, import it, pay your taxes etc all for what we pay for a Jag XF. 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.