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.<\/p>\n
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.<\/p>\n