Australia–EU Trade Deal Nears Finish With Luxury Car Tax on the Table

Ministers say only a red‑meat market access question remains for leaders to resolve.

Overview

A joint statement after talks in Belgium said positions had converged on key issues and that negotiators would now brief leaders.
Trade sources report the agreement is close, with the final sticking point linked to agricultural access for red meat.
Scrapping Australia’s 33% Luxury Car Tax is being negotiated as part of the pact, which would also remove the 5% import tariff on most European cars.
The LCT raises roughly $1.15–$1.21 billion a year and applies above indexed thresholds that capture many European models and high‑spec mainstream vehicles.
Officials and industry expect any change could be phased, and the fuel‑efficient threshold used for LCT tightened on July 1, 2025 to under 3.5L/100km.