PROFESSIONAL CAR CLEANER AT WORK IN MELBOURNE, 1998-08-14 (photo)

Professional car detailer Luke Barber prepares a used car for sale at a car yard in South Melbourne August 14. Under the Australian government's proposed introduction of a broad-based consumption tax, known as a goods and services tax (GST), the price of new cars will fall by about eight percent or an average A$2,000. The GST was the main component of the government's comprehensive tax reform package released on August 13. Not all car buyers would benefit with luxury cars costing more than A$60,000 bearing a retail tax of 25 percent. Used cars sold privately would attract no additional tax but used car dealers would pay tax on their profit margin. WB/KK