Cars in Australia are more expensive due to several factors:

Taxes and Duties: The Australian tax system imposes various charges on vehicles, including import tariffs, Goods and Services Tax (GST), stamp duty, and the Luxury Car Tax (LCT). The LCT applies a 33% tax on vehicles priced above a certain threshold, significantly increasing the cost of luxury cars.

Import Costs: Australia imports the majority of its vehicles, and costs associated with shipping, logistics, and importation contribute to higher prices. The relatively small market size also means that Australia doesn’t benefit from the same economies of scale as larger markets.

Market Factors: High demand for certain vehicle types, such as mid-range luxury cars, allows manufacturers to maintain elevated prices. Additionally, Australians have historically shown a willingness to pay more for vehicles, which can lead to higher pricing strategies by car companies.

Currency Exchange Rates: Fluctuations in the Australian dollar can affect import costs. A weaker Australian dollar makes importing vehicles more expensive, and these costs are often passed on to consumers.
Additional Context:

Feature Enhancements: Modern vehicles come equipped with advanced safety features, technology, and improved fuel efficiency, which can increase manufacturing costs and, consequently, retail prices.

Supply Chain Challenges: Global events, such as the COVID-19 pandemic, have disrupted supply chains, leading to shortages of essential components like microchips. This disruption has resulted in decreased vehicle production and increased prices worldwide, including in Australia.

These combined factors contribute to the higher cost of vehicles in the Australian market compared to other countries.