Weatherill lobbies Feds on car tax changes
South Australian Premier Jay Weatherill is meeting federal Industry Minister Kim Carr in Melbourne today to express the State Government’s concern over the impact of proposed Fringe Benefits Tax changes on local car producer Holden.
Weatherill said he would not allow anything to jeopardise efforts to ensure the future of Holden’s local manufacturing operations and expressed concern about the Government’s decision.
He also said that Prime Minister Kevin Rudd had not discussed the changes with him before his public announcement of the changes.
The changes to tax arrangements on car leasing and salary sacrifice packaging are aimed at raising $1.8 billion to help support a move to an emissions trading scheme (ETS) a year earlier than initially planned.
They are expected to affect 325,000 people and have been criticised by auto producers, leasing companies and tax analysts.
The local motor trades group has also weighed in, saying lease orders are being cancelled and jobs put at risk.
Motor Trades Association SA chief executive John Chapman today urged the Federal government to put the FBT changes on hold.
“At a time when reports are showing South Australia is in a recession and our own surveys show that the employment outlook amongst our members has crashed, this decision by the government is extraordinary,” Chapman said.
He said businesses would now look at how they could reduce tax costs on vehicles provided to staff.
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“This decision will hit the average worker who may have the benefit of a work vehicle for private use,” Chapman said.
“You will see some employers look at removing that benefit and keeping the cars locked in the yard after-hours.
“Other employers may look at using more commercial vehicles such as vans and utes which are not subject to FBT which will mean that those employees who had the very small benefit of using a company vehicle, will not be able to use it for taking the family out on weekends.”
