Opposition Leader Daley stumped when quizzed on planned ‘luxury car’ tax

Opposition Leader Michael Daley’s slip-up over a signature tax policy to slug buyers of high-priced autos to pay for nurses is the sort of mistake he can ill afford so close to election day.

• Daley backtracks on planned ‘luxury’ car tax
• ‘Luxury’ tax is class welfare at its worst

John Hewson would have been able to tell us today just how much it hurts to bungle an explanation of a new tax.

The famous birthday cake interview — where Hewson could not explain whether a birthday cake would cost more under GST — cost him an election.

In 1993, the late Mike Willesee made short work of Hewson, who appeared to flounder when asked to explain the details of his signature economic reform.

Artwork for Caldwell column, March 14.

And yesterday the NSW press pack made short work of Michael Daley when he couldn’t explain the details of his own new policy to hike taxes on vehicles costing more than $100,000.

The politics of Daley’s new tax must have seemed too tempting for the Opposition Leader to pass up: At a time when everyone’s feeling the squeeze, who wouldn’t like to give a little kick to those aspirational Audi and moneyed Mercedes drivers? Particularly when the proceeds are earmarked for hardworking nurses who rarely see the inside of a luxury car dealership.

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The economics, however, turned out to be more devilish.

Put aside the fact that the moneys raised wouldn’t come close to paying for his promised extra funding for nurses, Daley never thought through just who is buying those so-called luxury vehicles.

As it turns out, that group includes farmers and tradies, not just in Labor heartland electorates but also in bush communities looking for someone to give their vote to besides the Sydney-centric government.

The tax would increase stamp duty on vehicles costing more than $100,000 and boats costing more than $200,000.

Daley calls it a “luxury car and boat tax”, but regional workers in utes and trucks don’t feel their vehicles are a luxury.

And when Daley was quizzed on the details of this policy yesterday he could not answer.

Would this apply to slashers or ride-on mowers, came the question?

“I’ll have a look today and get back to you on the detail.”

That’s a very important question for farmers battling drought.

Will tradies suffer under the planned luxury car tax? Picture: Glenn Hampson

Asked if he would look at carving out an exemption for farmers, he said: “If I have to do that for farmers I will.”

Pressed repeatedly on how the tax would impact farmers, he even tried to deflect to his Shadow Treasurer, saying: “I’ll get Ryan Park to circulate the details.”

And when it was put to Daley politely that surely it wasn’t good enough for him to be proposing a new tax and not know the details on it, he responded pedantically: “It’s an increase.”

The whole exchange played into a growing narrative that Daley didn’t understand the impact of his tax.

Not knowing just how much extra he’d like the state to carve out of the price of a work vehicle will leave many wondering whether Labor is ready for prime time.

Likewise, it’s not enough to dismiss criticisms of the tax — sorry, increase — and minimise its impact by saying it will hit just 1.6 per cent of motorists.

With the election literally neck and neck in the polls, it’s a brave candidate who can afford to dismiss 1.6 per cent of any constituency.

This policy is class war writ large. But even more than that, it misses its target.

It is not true that everyone who is hit by this tax “can afford to pay a little bit more”.

Almost two hours later, Daley was asked again if he had figured out his tax.

He said it would not apply to mowers or tractors.

Ride-on mowers will not be subject to the tax. Picture: AAP

Asked about trucks, he said “it will apply to prime movers not trailers”.

He then said the government had also slugged trucks by tolling them.

How can that be a good enough reason to slug them with stamp duty himself?

Daley said he made no apologies for any of this because he wanted to put the money towards nurses.

And to give credit where it is due, Daley also said that he was doing the right thing by admitting where the money would come from.

This is true. He has been honest about his policy. But it will give voters the opportunity to see that Labor is willing to hike taxes.

Remember, this comes after Labor had already admitted it would cut plans for small businesses to pay less payroll tax.

On the hustings, Daley is relaxed. He spent yesterday touring the north coast — key seats he hopes to pick up like Tweed, Lismore and Ballina.

Today, he pushes on to Coffs Harbour — another show of confidence in his hopes to pick up a further Nationals seat.

Daley genuinely enjoys campaigning and meeting people.

He’s had just two days off work since he took the top job on November 10 and it’s not showing.

He is upbeat and optimistic, and rightly believes he is in the hunt to at the very least shake Gladys Berejiklian’s majority.

He is a good campaigner and a man of conviction — but he can’t afford to be lax on detail as he was yesterday.

There were more than 5000 heavy vehicles purchased over $100,000 in the last financial year.

And they were in electorates that are in play.

Places such as Ballina, Barwon, Coffs Harbour, Lismore, Monaro, Tweed and the Upper Hunter.

These are places where Labor’s vote matters and could sway the election.

It is a mistake for him to dismiss any tax as just a hit on the wealthy.

Likewise, Daley also came under fire this week from Business Chamber boss Stephen Cartwright for failing to agree to meet with him.

Hardworking voters who have enjoyed the benefits of the state’s strong economy will be concerned whether Daley is interested in continuing to grow the pie for all, or simply making sure his favoured constituencies get a bigger slice.