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Coalition will not support Labor's FBT hit on cars

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Coalition will not support Labor's FBT hit on cars July 19, 2013

The Coalition does not support Labor’s $1.8 billion hit on the car industry.

If elected, a Coalition government will not proceed with these changes.

Labor’s tax hike will cost 320,000 Australians an average of $1,400 per year.

The decision, made without any consultation, has already damaged the car industry.

Labor has offered no proof for their claims about rorting of the FBT arrangements. Instead, it appears to be yet another Kevin Rudd rush-job.

Mr Rudd is all talk and no action, but when he finally does act he ends up destroying people’s jobs.

The impact of this decision has already been felt across Australia. In just 48 hours: NLC leasing has made redundant 75 staff; McMillan Shakespeare is in a trading halt; Qantas group has frozen all motor vehicle purchases; the sale of Smartsalary is now on hold and car yards in major cities are already reporting lost orders.

It is estimated that 35 per cent of all salary packaged vehicles are made by local manufacturers Toyota, Ford and Holden.

This means even more pressure on local jobs in South Australia and Geelong as well as in car dealerships across Australia. Even South

Australian Labor Premier Jay Weatherill has said it is “a bad decision”.

For all Australian businesses who decide to maintain a car fleet these changes mean even more red tape and further costs to the bottom line.

For an industry still reeling from the impacts of Labor’s carbon tax, this bad decision has come at the worst possible time.

This decision is not just a hit on the car industry, but on thousands of Australians who have work-provided cars or who have salary-sacrificed vehicles.

It is estimated by industry that 75 per cent of drivers with salary packaged vehicles earn less than $100,000.

This is another hit on families who are seeking to get ahead and plan their futures with confidence.

There’s been the carbon tax, the changes to the private health insurance rebate, the increased superannuation taxes, the increased child care costs, the loss of promised family payments and now changes to the arrangements for the FBT on cars.

Since the announcement of these changes on Tuesday, the Coalition has been consulting with the car industry, leasing and tax experts as well as small business. It is clear these changes provide an unnecessary and unexpected shock to the industry which will put jobs and the economy at risk.

The Government has said this permanent change is necessary to pay for its one year change to the carbon tax. We do not accept this argument.

The Coalition has already detailed how it will pay for permanently abolishing the carbon tax as well as keeping tax thresholds and fortnightly pension and benefit increases. Our plans do not need a $1.8 billion new tax hike on cars, introduced without warning or consultation.

19 July 2013

© Tony Abbott MHR 2010 | Authorised by Tony Abbott MHR, Level 2, 17 Sydney Rd, Manly NSW 2095

Tony Abbott Federal Member for Warringah | Leader of the Opposition

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