{"id":2803,"date":"2013-07-17T15:29:48","date_gmt":"2013-07-17T05:29:48","guid":{"rendered":"http:\/\/blog.privatefleet.com.au\/?p=2803"},"modified":"2020-06-20T01:36:10","modified_gmt":"2020-06-19T15:36:10","slug":"fringe-benefit-tax-changes-how-it-could-affect-you","status":"publish","type":"post","link":"https:\/\/www.privatefleet.com.au\/blog\/buy-new-car\/fringe-benefit-tax-changes-how-it-could-affect-you\/","title":{"rendered":"Fringe Benefit Tax Changes: How It COULD Affect YOU."},"content":{"rendered":"

Disclaimer: this is not intended to be taken as financial or taxation advice. Please see your accountant.<\/p>\n

As if Australia’s flailing car industry didn’t have enough to worry about, the Labor Government’s proposed changes to Fringe Benefit Tax and the Carbon Tax have sent a chill wind through their offices as figures show that a potential extra cost of around $1400 per year per vehicle could stop the car lease industry in its tracks.<\/p>\n

PM Rudd announced on July 16 that a reversion to a emissions trading scheme would replace the carbon tax, with part of this change involving a $1.8 billion AU cut in FBT concessions. Under current measuring methods, FBT is calculated at 20 percent of a vehicles cost, regardless of whether used for private or business use or private use via salary sacrifice, with the assumption that the car is being used for predominantly business use anyway. The change will require a comprehensive log book keeping of the vehicle’s use. The Government Minister for Transport, Joe Albanese says: “There’s a lot of people clearly fiddling the system. Those people who are salary sacrificing who use their car less than 20 per cent but claim the 20 per cent offset – less than one kilometre in every five they actually use for work – the chances are it’s not a Holden Commodore, it’s a BMW.”<\/p>\n

Federal Climate Change Minister Mark Butler said recent technology made it possible to get a far more accurate idea of work-related car use and the Government had considered the FBT changes very carefully.<\/p>\n

“It’s not the same as it was in the 1980s. You can download these very easy apps that use GPS systems to do the work all for you,” he said.<\/p>\n

“You effectively just press the button, let it go and after you’ve finished marking that travel or recording that travel over the 12-week period every five years it can be automatically sent to your employer or your tax agent.”<\/p>\n

The Federal Chamber of Automotive Industries has responded with CEO Tony Weber claiming: “The changes undermine the long-term certainty the FCAI and its members have called for from government and threatened to affect around one-third of new car sales in Australia.<\/p>\n

\u201cThe effects will flow right through the industry, including to dealerships and service centres,\u201d Weber said.<\/p>\n

 <\/p>\n

He said he doubted whether the government truly understood the consequences of its decision, and questioned why the industry was not consulted on such a significant change. I fear what this means for domestic manufacturing and I am urgently seeking meetings with the government to encourage them to reconsider this decision,\u201d he said.\"car-calculator\"<\/a><\/p>\n

The Shadow Minister for Transport, Joe Hockey, had this to say at a meeting with automotive groups in western Sydney: “”This is going to be like a baseball bat to the motor vehicle industry in Australia. This is poorly thought out, there was no consultation with any stakeholders.”<\/p>\n

 <\/p>\n

Mr Hockey said 75 per cent of recipients earn less than $100,000 a year.<\/p>\n

“They are going to be hit with a tax bill of $1400 a year, every year going forward,” he said.<\/p>\n

Both Holden and Toyota have backed the calls from the FCAI to rethink its strategy, with other automotive industry analysts suggesting the changes further indicate an “out of touch with the real world” government, with the suggestion that technology will make the log keeping easier. It ignores the fact that the costs involved to companies to process manual log book keeping will result in higher prices of vehicles, more real time paperwork and the potential to damage the 80% fleet market sales Australian car makers have. It’s already caused one major fleet vehicle purchaser to freeze their order, pending further developments.<\/p>\n

As stated, please consult your accountant for information, as it stands. http:\/\/credit-n.ru\/offers-zaim\/moneza-online-zaym.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Disclaimer: this is not intended to be taken as financial or taxation advice. Please see your accountant. As if Australia’s flailing car industry didn’t have enough to worry about, the Labor Government’s proposed changes to Fringe Benefit Tax and the Carbon Tax have sent a chill wind through their offices as figures show that a […]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52],"tags":[],"class_list":["post-2803","post","type-post","status-publish","format-standard","hentry","category-buy-new-car"],"_links":{"self":[{"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/posts\/2803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/comments?post=2803"}],"version-history":[{"count":3,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/posts\/2803\/revisions"}],"predecessor-version":[{"id":12152,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/posts\/2803\/revisions\/12152"}],"wp:attachment":[{"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/media?parent=2803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/categories?post=2803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.privatefleet.com.au\/blog\/wp-json\/wp\/v2\/tags?post=2803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}