AgForce chief executive officer Brett de Hayr said Family First Senator Steve Fielding and the Coalition were to be commended for recognising that the proposed luxury car tax bill would unfairly penalise people who live and work in the bush.

"Many farmers in Queensland (particularly in far western and northern areas) regularly travel hundreds of kilometres to their nearest towns for essential supplies, health care and children's schooling, and they need a vehicle that can handle those conditions – it is a necessity, not a luxury," Mr de Hayr said.

"You do not see red Ferraris in western Queensland towns like Winton, Boulia, Burketown and Quilpie, but you do see larger 4WDs which would have been classified as a luxury car under the Federal Government’s proposed legislation.

"To call it a luxury car tax misrepresents the reality that these are not Toorak tractors, these are real work vehicles, and people who live in the bush shouldn’t be penalised with an additional tax on what is an essential item."

AgForce is now calling on the Federal Government to reconsider its approach to the matter.