FBT and the proposed changes: the fallout.
Although it has yet to be put to the proper decision makers, Kevin Rudd’s proposed changes to the Fringe Benefit Tax have already affected companies that would normally be purchasing cars for their fleet customers. Unfortunately, there’s a human cost too, with Fleetcare having to stand down around twenty staff as their orders have dropped to virtually zero. Another company, based in Perth, Fleet Network, have also removed twenty staff whilst South Melbourne based salary packaging group, NLC, have shed seventy five people and McMillan Shakespeare, a major salary sacrificing has also placed on hold a core aspect of its business.
Part of the issue is the proposal to backdate the changes, causing companies to pause their fleet purchases, such as a major Sydney based university has been forced to do. It also adds to the parlous state of affairs the local car makers have; with 35% of fleet cars made locally, the current situation has the potential to potentially hasten Holden’s local manufacturing closure whilst it negotiates for more funding to keep its manufacturing operations underway.
Automotive industry leaders have called upon Mr Rudd to withdraw the plan and discuss better options. With so many jobs at stake, it would make sense to do so.
Level 2, 9 Help Street
Mimi says:
I think that there will be fallout from this change I other areas. Tourism will take a hit as the family driving holiday wont be as appealing. The businesses that provide window tinting etc will suffer. Tow bar manufactures,the car wash industry (supporting new migrants) will suffer lose and staff cutbacks.
The leasing of cars might be seen as perk by some but it has been stimulating the economy. The turn over of cars will be less and this provide older cars with higher KS for the used car market.
Mr Rudd might think he is on a winner here but I don’t think the timing is right at all.
July 24th, 2013 at 3:07 pm
Stephen Scott says:
Another knee jerk reaction
July 26th, 2013 at 11:59 am
Richard says:
I cannot believe some of the things this Labour Government has done. Yet another example of hastily brought in or announced policy changes, without little thought of the consequences to all. It’s such a shame that this is doing the damage now based just on the announcement, when in all probability it will never be brought in, because (hopefully) we will have a new Government in a couple of months. Kevin Rudd, stop shooting yourself in the foot, your short lived popularity will surely diminish from here, be brave, end our misery, call an election now.
July 26th, 2013 at 12:19 pm
keith says:
Wake up MR Rudd if you want my familys votes do somthing for the poorer people and business folks of our country and help Australians not overseas, let there countrys deal with there issues not us and not Australians money . warrego hwy and other roads also schools need attention now alsoand what about the poor pensioners worked all there lives and diabled disability overseas and boat people are getting the money.what about our people our Country MR Rudd Australian folks deserve moree…… cheers keith
July 26th, 2013 at 1:05 pm
Ron Guthrie says:
Rudd continues to make policy on the run .He does not know how to spell ramifications let alone know the meaning of it. I call it his 3R’s ploicy
“Rudds running Ramifications”
July 26th, 2013 at 1:39 pm
Alan says:
what is the problem with closing off a loophole not available to all employees?
Keep a logbook, which is not hard, and if the usage is for business, no problem.
If it isn’t then why should the community give you a tax break?
Have a good day
July 26th, 2013 at 4:57 pm
Mimi says:
I think that it might affect people who have never even heard of novated leasing. For example McMillan Shakespeare share have dived and they are often a part of a superanuation portfolio. I have friends who lost thousands of their super because of the change and they don’t and have never had a leased car.
August 3rd, 2013 at 3:38 pm
Mimi says:
I hope your superanuation fund hasn’t invested in McMillan Shakespeare. Most of the people I know have lost thousands in super because of the change – and they don’t have leased cars.
August 3rd, 2013 at 3:41 pm