LOCAL BUSINESSES REJECT FRINGE BENEFITS TAX CHANGES
July 24, 2013
Kevin Rudd’s plan to alter the fringe benefits tax (FBT) has been heavily rejected by Gippsland car dealers and leasing businesses.
The Nationals Member for Gippsland Darren Chester said a number of business operators had already contacted his office to voice their concerns over the move.
Labor’s plan would see the removal of concessions on the personal use of salary-sacrificed or employer-provided cars. It is anticipated that 320,000 Australians will be affected.
Mr Chester said the automotive industry had estimated that 240,000 of those affected earn less than a $100,000 a year.
“This plan won’t hurt high income earners, it will hurt families on moderate incomes in Gippsland who are already dealing with increases in the cost of living,” Mr Chester said.
“The average cost to affected families of this decision is $1400 per year.
“For all businesses who decide to maintain a car fleet the plan also means more red tape and further costs to the bottom line.
“The Coalition does not support this decision and if elected, we will not proceed with these changes.”
Mr Chester said 35 per cent of all salary packaged vehicles were made by local manufacturers Toyota, Ford and Holden.
“These changes are an unnecessary and unexpected shock to the industry which will put jobs and the economy at risk,” Mr Chester said.
“Kevin Rudd made this damaging decision without any consultation.
“Since the announcement of these changes, the Coalition has been consulting with the car industry, leasing and tax experts as well as small business.
“We have deep reservations about the way this was implemented and about the amount of money being raised out of everyday Australians.”