FRINGE BENEFITS TAX CHANGES SCRAPPED BY COALITION
September 24, 2013
Local car dealers will benefit from the new Federal Governments decision to scrap proposed changes to the Fringe Benefits Tax.
Federal Member for Gippsland Darren Chester said local businesses had felt the pain of the move to remove concessions on the personal use of salary-sacrificed or employer-provided cars.
Mr Chester said scrapping the changes would support local jobs and renew confidence for car dealers, finance brokers and consumers.
“Labor’s plan was going to hurt families on moderate incomes in Gippsland who had already been dealing with increases in the cost of living,” Mr Chester said.
“Many of them were hardworking nurses, teachers, emergency service workers and employees of not-for-profit organisations.
“The plan was opposed at a local level by Gippsland car dealers and leasing businesses as confidence in the market stalled.
“A Coalition Government will not proceed with these changes which would have cost affected families $1400 per year.”
Mr Chester today met with Anthony Dwyer from Dwyers and Serrin Engel from SME Consulting to encourage local residents looking for a new car to consider salary-packaging.
He said 35 per cent of all salary packaged vehicles were made by local manufacturers Toyota, Ford and Holden, all of which are available at local dealerships.
“Scrapping these changes allows the industry to get back to business and plan for the future with a sense of certainty and stability,” Mr Chester said.
“Anyone in the market for a new car should consider a salary packaging option and give local dealers the chance to put their best deal forward.”
Mr Dwyer and Ms Engel briefed Mr Chester on what benefits vehicle salary packaging offers to employers and employees.
“Salary packaging options, including novated leasing, benefits employees and their families because they are able to purchase a car and reduce their tax liability at the same time,” Mr Dwyer said.
“The benefit of salary packaging to local employers is enormous. Even employers who don’t have fringe benefits tax status can offer salary packaging options to attract the best possible staff,” Ms Engel said.