Alarm over FBT adjustment
A group of companies is looking to meet with the Federal Government over its planned changes to the fringe benefits tax, after they were announced to offset the cost of shifting carbon price plans.
The Federal Government says it will adjust the stipulations of the fringe benefits tax (FBT) in an attempt to save $1.8 billion, offsetting the cost of moving from the fixed carbon price to a floating price a year early.
The planned adjustments mean a driver who buys their car under a salary sacrifice agreement would have to keep detailed records (including logbooks documenting why the car is being used) for 12 weeks over five years, to prove that the car is justified for business purposes. Now a coalition of car manufacturers, car leasing companies and salary packaging industry representatives are seeking an urgent meeting to see if the plan can be stopped, arguing reforms will have dire consequences for the industries.
South Australian Premier Jay Weatherill is holding meetings with car industry representatives in Melbourne today about the planned tax change, saying: "We need to understand that effect and get assurances from the Commonwealth that they'll take steps to ensure that there are no negative effects on local car manufacturers because we don't want this adversely affecting the negotiations [on taxpayer support]."