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FBT change creates confusion and additional work for brokers

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Australian Broker | 23 Jul 2013, 07:00 AM Agree 0
MFAA CEO, Phil Naylor, says proposed changes to the fringe benefits tax would increase costs and administrative burden for brokers
  • Andrew M | 23 Jul 2013, 08:46 AM Agree 0
    I know which party I won't be voting for...
  • not so old broker | 23 Jul 2013, 09:45 AM Agree 0
    Who doesn't keep a log book anyway?
    And it will stop the rorts by those who have 'work cars' which stay at home and go shopping in Mosman or Vaucluse.
  • Not So Young Broker | 23 Jul 2013, 10:15 AM Agree 0
    Grasshopper, (Not So Old Broker) - You need to think this through. What do Holden, Ford & Toyota think about the mixed messages they are receiving from the Government about wanting to maintain a viable car production industry. New car sales will plummet (started already). The next logical step is to sack workers and perhaps exit of more players from the industry? This will have massive flow on effects across the whole industry. Consultation would have been a good idea to try and understand the ramifications of the change. If this was done the change would not have been made. On a side note, this is what happens when a Government is broke, hard and rash decisions are made. Debt ceiling limit is going from $300b to $400b very soon.....
  • SIDBROKER | 23 Jul 2013, 01:33 PM Agree 0
    Well what have we learn to expect from a prime minister that has already been sacked once by his collegues for incompetance. Kevin Rudd was also largely responsible along with Labor for NCCP. We all know how difficult that has made it to borrow money for most Australians. If MFAA continue to seek to have NCCP fully applied to pospective new car buyers needing finance then that will be the end of the motor industry in Australia full stop. Whats next fellas???
  • Tony South Coast | 24 Jul 2013, 11:08 AM Agree 0
    Twenty odd years ago, the Fringe Benefits Tax was introduced to tax the salary sacrifice car benefits that prevailed at the time -- and the Government fully understood that there was not necessarily a business use component with those cars; they just wanted the tax. At that time, the more kilometres you did in your car (business or private) the less FBT you paid.

    More recently, in a further "tax grab", the Government scrapped the sliding scale FBT formula and introduced the flat 20% (irrespective of the number of kilometres travelled).

    Now they claim that this has been a "loop-hole" that they are now closing -- where people do limited or no business use kilometres and still get a salary sacrifice vehicle (and pay FBT). But, they have known this all along!!!!

    Now, hundreds of thousands of employees (principally with "not for profit organisations") have had this benefit ripped away -- and the effect on the new car industry in Australia will be catastrophic.

    Yet another "knee-jerk" policy without any industry consultation from a party struggling to stay in power. The sooner they are gone, the better!
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