An election promise to increase the amount of stamp duty people motorists pay when they buy vehicles costing more than $100,000 has led the NSW Farmers Association to ask whether or not the increased charge would apply to heavy vehicle purchases.
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In February, NSW Labor announced if it wins the election it will charge an extra duty of $7 per $100 on vehicles sold for more than $100,000.
The money raised would then be used to pay for more nurses in hospitals and enshrine nurse to patient ratios.
READ MORE: Will Labor's 'luxury' car tax hit farmers?
Labor's plan would mean one nurse for every three patients in major emergency departments, one midwife for every three mothers in postnatal wards and one nurse to each patient in adult and paediatric resuscitation beds.
"NSW Farmers is seeking clarification on whether this proposed new tax rate would apply to heavy vehicles," NSW Farmers President James Jackson said.
"Any increase in taxes to the purchase of heavy vehicles has the potential to add costs to the supply chain.
"This means that the cost of agricultural produce will be higher for the consumer and transport costs increased for the farmer."
READ MORE: NSW Labor backtracks on luxury car tax
Mr Jackson acknowledged the cost of purchasing agricultural machinery will not increase under Labor's policy.
"In terms of vehicles, farmers can sometimes spend more than $100,000 on a four wheel drive and accessories, but it is not for reasons of luxury.
"These vehicles and accessories are purchased for practical and safety reasons.
"There should be no increases in taxes for farmers at a time when cash flows are constrained due this severe drought."
READ ALSO: NSW coalition and Labor split 50/50
Labor's Treasury spokesperson Ryan Park said "the vast majority of vehicle owners will not be affected by this tax but everyone will benefit from more nurses."
The Daily Liberal asked NSW Labor representatives to clarify if heavy vehicles would be affected by the stamp duty changes proposed. None were able to respond.
