FBT news not good.

[yowie Advanced Member Find all posts View Profile Close yowie]

For those of you who read The Daily Telegraph from NSW, read the articles by Terry McCrann, business reporter and a very smart man (too lengthy to reproduce here)

Tuesday July 16, page 42
Wednesday July 17, page 30

Also that f***wit Rudd was at a press conference talking about Australian families receiving $380 per year for ETS compensation, Treasurer Chris Bowen interjected and said a one-off payment of $380, and Rudd again said it would be $380 per year. Again policy on the run.

[vxcruiser08 Senior Member Find all posts View Profile Close vxcruiser08]

Glad I decided not to proceed with this on the Prado.

[Bushbasher Out of control poster! Find all posts View Profile Close Bushbasher]

A mate has a take home car as part of his package with a mining company. They don't care how he uses it after hours and he can even use it to travel anywhere in Oz and there's no reporting by him so how do they track that for FBT?

[mjrandom Out of control poster! Find all posts View Profile Close mjrandom]

We do a 3 month report on our daily use of our work vehicles. They then use this info to calculate the year's FBT payment. They were mainly interested in private commuting and how many nights the vehicle was garaged at home. A mate has a take home car as part of his package with a mining company. They don't care how he uses it after hours and he can even use it to travel anywhere in Oz and there's no reporting by him so how do they track that for FBT?

Total kilometres travelled. We do the same thing.

[Peterpilot Avid PP Poster! Find all posts View Profile Close Peterpilot]

This email was sent to Qantas employees two days ago:


FREEZE ON PURCHASES OF MOTOR VEHICLES UNDER SALARY SACRIFICE MOTOR VEHICLE SCHEMES

The Federal Government has today announced changes to fringe benefits tax (FBT) concessions on motor vehicles.

While the impacts of the changes are not yet 100 per cent clear, it’s likely the changes will increase the FBT cost on motor vehicles.

As a result, the Qantas Group is putting a freeze on all new motor vehicle purchases under the salary sacrifice scheme. The freeze will be in place at least until the full details of the changes are available, and we’ve had a chance to review exactly what impact these changes will have. The freeze applies to purchases of motor vehicles under both the EMVS and novated lease schemes.

If you’re already in possession of a motor vehicle under either of these schemes (or you currently have an order lodged for a new vehicle through either of these schemes) your arrangements for that car will not be impacted.

Thank you for your understanding. We'll update you further as soon as possible.

[ARP Lurker Find all posts View Profile Close ARP]

The biggest issue here is that the changes take effect from the day of tha anouncement, i.e. without any warning. At least with the previous equalisation of the FBT rate associated with novated leases following the Henry Review came into effect at a date after they were announced so that at least people could make an informed decision and plan. Lets be clear here, this is not about people rorting the system as Labour would like us to believe, this is about Labour no olnger liking the system and changing it overnight without any consultation or warning. A likely outcome is people rorting the logbook system so that they are is the same situation as they were previously.

This not only affects individuals taking out novated leases but also company provided vehicles and can only be a poor decision for what is left of the local car industry with so many fleets having a buy local policy, hence so many Camry's and Commodore's on the road. A likely outcome is that even more utes will be sold as they are exempt from FBT. The industry body is quoted on Carsguide.com.au today as saying that this has the potential to wipe out the leasing industry and that 4 of the top 10 companies already talking about laying off people by the end of the week as 8,500 orders have been cancelled across the industry in the two days since the anouncement.

I was lucky, my new lease started 5 days before the announcement.

[404pug Avid PP Poster! Find all posts View Profile Close 404pug]

Really gents. Get a grip.If the lease is for genuine business purposes there is no real change. What has changed is the salary sacrifice part of the deal.This has become a screaming rort over the last 10 years or so because anyone who could negotiate a salary package with a car in it was onto a great deal - no GST, bulk discount,,fixed servicing etc. Very nice if you can get it BUT a huge number can't. Those who get the good deal are being subsidised by those who cant to the tune of $1.8 bil. Hardly equitable. If it is non work related buy outright like the rest of us. By the way, using the leased car to drive to and from work is not 'work related". You cant claim your train fares so why can you claim car expenses which are not related to work. Is it not best if we keep politics ogg this forum? Neil

[D4D Addicted PP Member Find all posts View Profile Close D4D]

By the way, using the leased car to drive to and from work is not 'work related".

That depends on whether you have a designated office/desk at work or you are classified as a 'mobile' worker.

I agree packaging a car to drive to and from work isn't what the current tax law was designed for however calling it a rort is a stretch. It is a legal way to minimise your payg tax, don't hate the player hate the game.

I also doubt anywhere near the $1.8B will be recouped by this based on the large number of people who will be looking for jobs in the near future.

Policy on the run yet again, it only took Rudd 2 weeks this time...

[photoprado Avid PP Poster! Find all posts View Profile Close photoprado]

I also doubt anywhere near the $1.8B will be recouped by this

I agree, but for the reason that once the loophole is closed, people will stop trying to drive trucks through it.

[mjrandom Out of control poster! Find all posts View Profile Close mjrandom]

There was no rort, people were legally using the system in place, for right or wrong. Look at the words on the AtO site, no mention at all of "I am doing 67.7% business travel".

So how is Tin Tin going to fill the void in his budget? Can negative gearing??

[Corigator Avid PP Poster! Find all posts View Profile Close Corigator]

I agree MJRandom, What Rudd has done is cause more redundancies without even trying or caring.

What he should have done is to make it effective once he got re-elected and passed the legislation. Now some poor buggers have lost their jobs and the car industry titres on the brink. Holden will probably be the next to go.

Even if Rudd doesn't get the chance to implement this ridiculous policy he has already done the damage.

[mjrandom Out of control poster! Find all posts View Profile Close mjrandom]

Off topic I know but up to a few weeks ago the coalition plan to dismantle the C tax was said to be impossible according to labor. Now it is their no 1 imperative. I'm confused.

[yowie Advanced Member Find all posts View Profile Close yowie]

During their time in, Labor has been writing the Legislation in such a way that it will be hard for some of the policies to be easily changed. Shows what a bunch of ***** they are.

[A10 Member Find all posts View Profile Close A10]

Really gents. Get a grip.If the lease is for genuine business purposes there is no real change. What has changed is the salary sacrifice part of the deal.This has become a screaming rort over the last 10 years or so because anyone who could negotiate a salary package with a car in it was onto a great deal - no GST, bulk discount,,fixed servicing etc. Very nice if you can get it BUT a huge number can't. Those who get the good deal are being subsidised by those who cant to the tune of $1.8 bil. Hardly equitable. If it is non work related buy outright like the rest of us. By the way, using the leased car to drive to and from work is not 'work related". You cant claim your train fares so why can you claim car expenses which are not related to work. Is it not best if we keep politics ogg this forum? Neil

I tend to agree with you Neil but then I am retired and can't access salary sacrificing now anyway

However, I did use it when I was working to get my current Prado. The financial benefits of salary sacrificing are overstated unless you are reasonably well paid and for most average workers, there are other ways of financing your car that may offer similar benefits overall.

[whitey89 Lurker Find all posts View Profile Close whitey89]

looks like the coalition just a got a few more votes from pradopointers

http://www.brw.com.au/p/business/cha...rAq8hbPUOG5SdO