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Federal opposition leader Tony Abbott says the Coalition does not support the Labor Government’s changes to fringe benefits tax (FBT) rules and will not proceed with the policy changes if elected.

The government has attracted widespread criticism from Australia’s automotive industry and salary-packaging businesses since announcing a $1.8 billion cut in FBT concessions on Tuesday, with those opposed to the changes claiming it will cost hundreds of jobs and potentially tens of thousands of new-car sales.

Abbott says the government’s decision will cost 320,000 Australians an average of $1400 a year and “has already damaged the car industry”.

“Labor has offered no proof for their claims about rorting of the FBT arrangements,” Abbott says. “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 Honourable Tony Abbott MP, Leader of the Opposition,Budget Reply Speech Parliament House Canberra.

The opposition leader says the impact of the policy change has already been felt across the industry.

“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,” he said.

Abbott quoted figures that estimate 35 per cent of all salary-packaged vehicles are made by local manufacturers Toyota, Holden and Ford.

“This means even more pressure on local jobs in South Australia and Geelong as well as in car dealerships across Australia,” he said. “Even South Australian Labor Premier Jay Weatherill has said it is ‘a bad decision’.

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

2012 Toyota Aurion AT-X

Federal Treasurer Chris Bowen has leapt to the defence of the revised FBT rules he announced jointly with the Prime Minister earlier this week, insisting that claims that the FBT changes will cause serious damage to industry were “alarmist and irresponsible”.

“Mr Abbott and Mr Hockey have claimed these changes will cause massive damage to the car industry but the biggest threat to the car industry in Australia is the Coalition themselves, who have confirmed they would cut at least $500 million from auto industry assistance,” Bowen said.

Bowen maintained that two-thirds of the 320,000 Australians currently salary sacrificing a car under FBT rules earned over $100,000 a year – a figure refuted by Abbott, who quotes an industry estimate that as many as 75 per cent of those earn less than $100,000 a year.

ford-territory

Bowen sought to clarify some of the changes, insisting that they were not as onerous as they had been widely reported, with drivers only required to account for 12 weeks in a five-year period, and confirming the changes would not affect existing commitments, even if the vehicle was on order and had not yet been delivered.

“Legitimate business use of a car can still be salary packaged and there are no changes to other items that can be salary packaged such as taxis, panel vans and utes, as well as laptops and benefits for not-for-profit workers,” he said.

“The Australian people are used to the negative politics of fear from Mr Abbott and Mr Hockey, who have made an art form of it for the past three years. It is no surprise they are stoking fear again over these changes because they have no credible policies themselves.”

Abbott said the Coalition had already detailed how it planned to pay for 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,” he said.




  • Adam

    Haha… and anyone who believes he’ll change it back or won’t implement it are quite silly. If he does get in just wait for all the things Labor has done that he will NOT repeal. I bet it’s most of it. See Abbott just wants to be the PM, it’s all selfishness with him, he is not doing it for Australia because if he was he’d resign.

    • JD

      Lol remember the LCT. Coalition introduced it at 25%. Labor criticized it at the time only to increase it to 33% after they won seat in 2007.

      Still dont trust abbot, or any politician for that matter

    • guest

      Rudd might of stop the boats this afternoon with regional agreements with Indonesia,Pupua New Guinea,Malaysia..That will blow a lot of wind out of the coalition sails.

      • LC

        Keyword: Might

        • horsie

          I can’t wait to see the look on tonys face when he looses this election. I think ill tape the moment so i can replay it over and over again.

        • guest

          The cost of this will be massive.But everything to do with illegal boat arrivals has a massive cost to the Australian taxpayer.
          At least now genuine assaylem seekers in UNHCR camps will get a chanse of coming here.The ones who cant afford the boat trip.

      • Zaccy16

        how many millions of tax payer money did rudd have to pay indonesia though to send the asylum seekers there? PNG would not have said to rudd ” yes we will have all you illegal imigrants for no money at all!”

        • Sumpguard

          How much do you think it costs to house them in camps for years until they are processed and settled? Don’t be so naïve! This policy is more about deterring them from coming to begin with.
          Have you and others forgotten already that while we sit in the comfort of our homes and blog there are men ,women and children laying at the bottom of the Indian Ocean dead? What cost to them? Don’t be so shallow.

          • Zaccy16

            I agree that its terrible about people dying but they did get on the boat and knew the risk

        • $29896495

          Do you realize the biggest problem with illegal immigrants lies with over stayers. The asians who get off a plane and go to ground. Boat people are nothing by comparison. Get some perspective. Boat people in fact, are not an invasion. As certain politicians and news channels would have you believe. You’re carrying on like a mad thing.

          • Sumpguard

            All totally true. Your lack of compassion for fellow man is truly disgraceful Zaccy. You should be ashamed of yourself.

          • guest

            The boat people are highly visible. They can be photographed or filmed – they arrive on dodgy looking old boats. Plane-people, or jet-people arrive on planes, they look like you or me when we are walking through the airport. They aren’t iconic, so they don’t get much attention.

        • barry

          At the end of the day the Australian Government chooses who comes here,not the people smugglers.Your just spewing because the Libs have lost there No1 election issue.

          • Sumpguard

            How true. Did you see Abbott’s face on the news tonight? That is one drained individual. I personally think he will still sneak over the line but not before he ages considerably. He knows now if he doesn’t win his party will kick him to the kerb. But then the same may apply to Rudd too.

      • Barack Yomama

        WHAT is there to stop boats from going to Australia AFTER they get settled a few months or yrs in PNG? NOTHING! Manus will just be a stepping stone – an EXPENSIVE one since Rudd will build them hosps, homes, roads, security, health care, only for these people to wait when the attention on them is gone. And they launch boats AGAIN to Aust. We need to see these boats for what they REALLLY are…. Territorial invasion.

        • $29896495

          Seriously you should take this rhetoric back to America and complain about the Mexicans.

      • LeStori

        Everything Rudd touches turns to Krudd. Only the the Money Tree running out of money will stop him, Unfortunately Labor’s money tree is the taxpayer.
        The FBT changes are to save money for the Carbon tax revamp. This is needed because Juliar went in over her head. Meanwhile the 200 Billion debt is continuing to balloon with nothing to show other than some dodgey insulation and dead in the roof space .. 0 to 200 in 5 years. Another Term will bankrupt us all.

        • Cars

          Well over 200 Billion and now the mining sector is in retreat. Sadly we have no other real cash cow and the debt collector isn’t going to politely wave the bill. That’s what they call responsible government?

          • Buckles

            We are more than capable of servicing our debt. Heres a news flash, debt for a country isn’t a bad thing. We will not go Bankrupt. Australia is not the same as your average blue/white collar household nor does it have the same way of thinking….

          • Cars

            News flash? According to who? What you say? Give us a break. Debt is what created the GFC in the first place. What idiot thinks borrowing more is the solution to fixing the problem? The only big income we have is mining. Sure we export food produce but it pales in comparison. Tertiary Education used to also provide some income to foreign students but since Gillard announced cuts from higher education to fund Gonski (WTF!!!) you can be sure we will struggle to get the big fee paying internationals coming here.

            Sooooo long story short. What may have been regarded as relatively small debt during the mining boom suddenly has become a festering wound to our future ecconomy. This is further complicated by the fact we have an ageing population that will cost a lot more to look after over the next 3 decades.

            So yes, not a domestic household (amazing contrast einstein) but thinking the way you do is going to destroy our great nation and we will become slaves to foreign investors.

            Just think of the interest alone we are paying on nearly $300 Billion dollars. Yes – near $300,000,000,000 and no mining windfall to pay for it. Time people like you wake up and did some simple economics. Perhaps you like paying lots of tax and think we should pay more. I work hard for my money and the tax I pay – I want it spent wisely, not racking up huge debt.

          • Sumpguard

            Coalition troll.

          • Buckles

            Ha spare me the sarcasm @Cars, I know exactly what scale it’s on but going off some of the comments here, others don’t. Australia was pretty well protected from the GFC…
            The GFC was caused by bad fiscal policy and terrible decisions by primarily American & British Banks. It’s a little harder to bankrupt yourself here. You can’t just hand back the keys. We have much more stringent controls than them. That’s only part of the story mind you. The other issue was turning that debt into some form of asset. Selling it on to another consumer. How stupid. Then you’ve got the Chinese who helped us to no end. Now before you call me “Einstein” again, i’m guessing you knew all that- as you appear to be a bit of a know it all.

            In any case. We are only borrowing something like 20% of our GDP. Not exactly in a nasty situation.. the sky isn’t falling…Yet.
            I completely agree that (particularly WA) has to diversify it’s economy. That said… You’re forgetting one half of the resource equation. Oil and Gas, particularly Gas, for which we have a phenomenal supply of and plenty of consumers that want in. Then theres coal and uranium…
            We can supply ourselves with Gas for the next 80+ years or sell…that’s not even including the wells that have matured yet. I guess it’s up to the government how they use it.

      • Duddlie do nothing

        The Coalition already had stopped a policy that stopped the boats until it was changed by Rudd and the boats started coming again.
        Rudd governs by trial and error.

      • marc

        theyre still coming in records numbers and ppl are still dying

    • marc

      anyone who believes Rudd will implement a policy without major stuff ups is even sillier. Pink batts, laptops, supermarket website, petrol website, immigration, school halls, boats, carbon tax, mining tax, budget deficits, public debt … and all hes managed to do is say sorry.

      • $29896495

        There are actually some good ideas in there. Pink batts. (profiteering teet sucking business owners aside.) Laptops another excellent idea (not proven otherwise) Supermarket and petrol websites – principle was good but would have been better to put under government price control. This of course would have gotten people like you upset, saying communist. Remains to be seen what happens with boats. This is infact an absolute policy. Once they know they can never get into Aus that way they will stop unless they want to go to PNG. Libs big answer now is the armed forces (what tha?) School halls another good idea for masses of schools with out one. Carbon tax=Gillard, Mining tax was never implemented properly thus the libs got their way and our resources were dug out from under us. Deficit is inevitable when gov money producing business is sold off, and people like you don’t want private enterprise to pay for our resources. Public debt see previous three comments. As per “they’re still coming” wake up! the biggest threat to our borders are the asians and others who get off planes with tourist visas and are never seen again.

        • marc

          you need to do some more homework and forget facebook

          • $29896495

            Was that a retort? As relevant as your comment. Try again.

  • Dave W

    That pretty much sums up politics. Just wait for the opponent to make some controversial policy then promise to reverse said policy if people vote for them.

    • Bob

      ..which everyone should know is cr*p. Given the myriad pressures on the budget -with falling revenues and economic instability – does anyone actually believe that a Coalition government elected on the promise of budget surpluses, and who us already promising massive new spending together with massive revenue cuts, will decide to throw a lazy half a billion a year to subsidise the private use of leased cars?

      Not even close to being affordable unless the Coaltion decide to cut something like health, education or defence… entirely.

      • Sumpguard

        Spot on Bob. Abbott actually cautiously supported this last week until he realised there was no mileage in it for him politically. He did exactly the same thing with the Asylum Bill.

  • David

    Your heading is quite inaccurate:-
    Coalition will axe fringe benefits tax changes if elected: Abbott

    There’s nothing to axe – it’s not legislated and never will be; it’s simply an ALP policy for the next election. You got suckered by Rudd’s weasel words, as did contributor Adam who states Abbott won’t “change it back”. Nothing to change guys. This is but another example of Rudd the Dudd in full flight, spin, spin, spin – suckering in the gullible.

    There’ll never be this change to the FBT to kill off the remnants of the car industry and slug many ordinary salary earners, because Rudd will never be PM again after the election. Australians aren’t stupid – well, most of us aren’t!!

    • Cars

      People say we get the government we deserve. I’d like to think that Australian’s aren’t that bad! We deserve far better than anything on the current political spectrum. Sadly come election day we will be choosing between dumb and dumber. It’s anybody’s guess as to which is which………

      • Job

        Sad but true.

      • Yetiman

        Australia is a robust democratic country. I’m confident that both major parties will be a good government.

      • horsie

        hey. if you reckon you could do better then go for it.

      • al

        Politicians are not dumb. People are dumb to believe in them. Intelligent people are well aware that ALL politicians are nothing more than lying puppets, following the orders of their secret sponsors…

        • Cars

          Good point!

          I retract dumb and dumber (apart from entertainment value) and instead I insert Mr selfish and Mr selfish. Just about all of them have personal agendas which lie ahead of the public interest.

    • Yetiman

      You are not stupid but depressed and angry.

    • Adam

      If you read my post you will see I wrote “…or implement it”. I completely understand it hasn’t been passed though you’re comprehension is something that needs work :)

  • Shak

    You know what, as much as i detest that bigoted monkey Abott, he has one thing right. A lot of salary sacrifice agreement vehicles come from the three locals, and anything which reduces their local sales at a time like this cannot be a good thing. Think this one through Ruddy, you still have time before the election to change these proposed rules if need be.

    • David

      It’s not exactly rocket science, is it? As I said above, Rudd has form as announcing thought bubbles as policies. Witness the NBN which was literally drawn up on an envelope by KRudd and that weasel Conroy on a plane trip. Look at the disastrous result. Same goes for the disastrous pink batts which did nothing but waste billions and killed 4 young men. KRudd is full of it. He gave no thought to the effect on the car industry nor the leasing industry – just wanted to be seen to doing something – anything. Preaching to the gullible.

      Australia deserves better. Come the election, Labor will be toast. The worst administration I’ve seen in 50 years.

      • Sumpguard

        “Preaching to the gullible.”

        Your brainwashing by the MSM means your statement applies to you. If you had the capacity to think for yourself you’d see through the rubbish and realise the NBN will be taking this country forward but no doubt you think it is about downloading blue movies faster because Murdoch said so. Truth is it will hurt his business interests the most. Hence the endless smear and the deal with the LNP to protect Abbott from scrutiny in return for a far inferior option that keeps Rupert’s finger very much in the pie. IT experts the world over are praising it but they can see through the rot about asbestos and cut cables ,both of which occur day in day out away from the NBN but get no attention.

        The pink batts scheme spread a massive cash injection throughout the Australian economy and the number of lives lost v’s roofs entered was actually below the industry average but again you bought the spin. 7 electricians have died in roofs since the Batts scheme ended. With less than half the number of roof entries. Where are their headlines? Oops sucked in again.

        It’s a shame in some ways that the government didn’t sit back and do nothing like other countries in Europe so you could then fully appreciate what they saved us from.
        .
        Mr Abbott’s sudden stand against this is a populist one. Yesterday he was leaning towards supporting it . Anything for the vote. His use of boat people’s coffins as his soap box is disgusting. They are people fleeing atrocities and maybe if the media named the victims it might help overcome the “illegal immigrants” tag that they certainly do not deserve. They are men ,women and children !!!!! Abbott signed off on the ALP’s legislation to end Howard’s pacific solution because it was deemed illegal. Go try and find it over at Ltd News though. They won’t print it !

        At the end of the day this is tax evasion and the MSM should be reporting it as such rather than encouraging the industry to abuse the system. Even worse our potential future PM is doing the same ! It cannot be wound back slowly as some are suggesting as it opens it to much wider abuse. The Queensland government tried that with tree clearing laws. The end result was the total wipeout of over 1 million hectares of Brigalow Forest in western Queensland through ill-informed panic.

        In your case it is very much rocket science.

        • $29896495

          Well said.

        • SRT

          Tell that to the people who lost there Business over this. I know some.

          • Sumpguard

            And I know someone that lost theirs when solariums were banned and they were working within the law and didn’t get Tony Abbott rushing to help them.. So your point is?

            …and no, I don’t believe you know some !

          • Pal

            I’m not one to make lying comments and indeed i do know some. BTW i did not vote for the LNP in the last two elections and don’t normally think it’s appropriately to turn a car site into a political argument.

          • Sumpguard

            Name change?

          • SRT

            yes, sorry.

          • Tony Abbotts No1 Fan

            I find very hard to believe that business’ have closed as you say in the three days since it was announced.

            And if indeed that was the case that business must have been running on thin ice to start with. I mean really just stop peddling the 2GB mantra.

          • Matt

            Lost their business? A business built on government funds? Sorry no compassion here, I’m sorry 300 thousand or so dont get a tax break anymore thanks to the rest of us, its insignificant and really means nothing to the other 21.6 million of us. PAY your taxes and stop whinging when the government takes away middle class welfare. It’s a good thing.

        • LC

          Our economy wasn’t saved* from recession by anything Labor did, from the BER to Batts to handing out free money. It’s because of the mining boom, and how it had tied us to China’s arm, at a time when their economy was booming while the rest of the world’s economy went bust.

          *By “saved”, I mean “delayed”. While it stopped us going into recession at the same time as Europe and the US, we will go into one of our own as they come out, as the mining sector slowly starts to bleed jobs after the boom and manufacturing goes extinct, while at the same time the cost-of-living is out of control and more and more people claim government benefit payments that have to increase to keep up with the cost-of-living.

          • Zaccy16

            yep, dumb swanny can’t even see a 12 billion deficit in the budget let alone keep us out of deficit, we were just lucky in 08 as you said LC that mining was booming! luckily idiots like conroy, suck up garret and swanny have all gone!

          • Sumpguard

            ………….and Abbott couldn’t see a $9 billion hole in his election promises last time around Zaccy. Howard blew $200 billion during a mining boom and booming global economy and is officially our most wasteful PM ever and set us up for the structural deficit we are enjoying now. Go do some factual research in the world of economics instead of buying into the lies at Ltd News !!
            Part of the reason for the fall in revenue was a compromise on the mining SPT which Abbott forced so he in many ways contributed to the deficit. Again stop buying into the tripe coming from the MSM.

          • $29896495

            SO how did the other Gov get the surplus? They sold everything. Even if labor hadn’t been in the Libs would have followed the same route. They said they would, it’s just b*tching over where they would have spent the money. Because they didn’t save the money, where’s the next lot supposed to come from? The only way with out any government owned business is through taxes. No matter who is in gov.

          • Zaccy16

            you need to have money to spend it!!!

          • $29896495

            And that means what? So you purchased your car and house outright? What the libs did is equivalent to selling the house and car and leasing it back. Thats where a lot of money is going. They put a lot of little tax perks in to get votes from the well healed which we now can’t afford. BECAUSE they sold everything off which brought in income to the government. The artificial surplus would have been dribbled away eventually by some one, then what? Increase taxes and borrow. It was inevitable because they built it up by selling everything off.

          • Zaccy16

            like anyone yes i had to borrow SOME money to buy my cars and house but have always had a manageable debt that i know i can pay off, as of today i am debt free, thats the problem with the government, they will be in debt for years and years to come with no sign of not being in debt

          • $29896495

            Do you understand how the libs got rid of debt? Do you understand that you can’t sell your house twice after you accumulate more debt? This was going to happen whoever was in power. Do you understand that?

          • Zaccy16

            yes i understand huwtm but the debt has got out of control!

          • $29896495

            Do you realize to run a country like ours when the libs have thrown away benefits we could have had from our resources, that that is the way we are going to end up running this country. The libs set us up on the US template. Everything privatised. That means the only way money can be brought in with no control over resources is to TAX you and I. There is no way around it. Either they borrow or we give 3/4 of the money we make to the government.

          • Cars

            Here we go again – “Libs selling everything off….blah blah” – yet you always forget the last QLD and NSW Labor governments were selling everything that wasn’t nailed down. Don’t tell me that it is irrelevant because they you are talking about the Feds – Labor is Labor is Labor.
            Before you say anything else ridiculous – yes I know the coalition
            isn’t much better but quit playing your numpty games about who sold what. It really is Pot calling the Kettle black, it’s old, ignorant and I’m calling you out on it yet again………

          • Buckles

            It’s not a big deal- the debt is manageable and they can pay it. The Government keeps investing big time in projects, they Keep taking loans… As they pay another out, they take another on. They’re not like us where we buy a car or a house and then when it’s paid off we sit around for a while using the same car or house but I’m guessing you knew that. The problem is our perception of debt. If you’re financially savvy debt can be fine so long as you know you’re not going to go bankrupt.

          • Cars

            Manageable? I’d like to know how. Have you seen the actual revenue generated by the mining sector recently? Are you aware that our foreign buyers are all having massive downturns in demand?

          • Buckles

            You’re so focused on Mining. There is a lot more to our Resource sector than Mining. I know exactly what’s going on. The Big miners are on recruiting freezes for some roles, others are being made redundant. I said the rest in my other post. I’m not going to repeat myself.

          • Cars

            The question is where does the Australian Government and the economy gain it’s biggest income from. The answer is the mining sector. It has been for over a decade the Aussie cash-cow. With it slipping into idle we simply don’t have any other revenue streams to make up for the shortfall. Our GDP is going to be lower yet we have a continually growing debt. People like you are quick to sprout “it’s manageable”. It is important to ask at what point does it become irresponsible? My valid concern is that we don’t encumber our children and their children to undue burdens. The world is going to change at unprecedented rates in the next few decades. If we don’t position ourselves financially to make the essential changes we will need, we will become bankrupt and desolate. Anyone that thinks it can’t happen is a fool.

          • Cars

            Propaganda. Must be hard for you to drive with one eye.

          • Tony Abbotts No1 Fan

            So easy Zaccy to sit in your chair & bag people who want to have a go, whether your aligned with their political ideologies or not.

            Why don’t you show us how good you would be in doing the same job, it your hand up & seek per selection, but judging by some of the ignorant comments you come out with, you would be an abject failure.

          • Zaccy16

            i never said i would be a good politician, i would be hopeless probably BUT out of the current crop of lying polis in both partys i would rather have a liberal party, this is just my opinion and you can differ from me, and actually i used to be a labour voter but in recent times they have been a joke so liberal all the way, but the worst would be the greens!!!!

        • Yetiman

          You have my vote.

      • SRT

        looks like no one else that has commented on here has paid any attention to whats been happening since 2007. Probably the most disgraceful and embarrassing government Australia has ever seen.

        • Sumpguard

          You clearly haven’t.

          • Cars

            Did you miss the part that K-Dudd was the first Prime Minister in Australia’s history to be deposed of by his own party in his first term? Have you been in a desert while all the factions have been knifing each other? Did you forget about Craig Thomsons’ fraud? Did you miss the point that it has been a minority government running the country for the past 3 years? All these questions are legitimate.

            SRT is correct – we currently have the most disgraceful and embarrassing government Australia has ever seen.

            Yes it wouldn’t have been much better under the coalition, I’m not arguing that. The simple fact is this government is nothing short of appalling and once again they are going about like bulls in a china shop.

          • gtrxuone

            You make a valid point.The Labour MP’s that voted Gillard to the the top job have a lot to answer for.
            Julia made a number of bad judgement calls on a number of polocys.So showed weak leadership in a mi ority government,chequemate.
            You do have to respect Rudd,has an amazing work ethic.He won’t dissapear into the night.

      • Yetiman

        Really? I’m self employed (online retail) and doing well. You need to get another job.

        PS: Love my fiber optic broadband.

    • gtrxuone

      Your right Shak.If Ruddy scraps the carbo tax full stop.He doesn’t need to do this.

    • Andy

      Actually since the majority of cars leased are imported, and are usually more expensive alternatives to Aust manufactured cars (ie BMW’s over Commodores, Golfs over Cruzes etc), it’s just as likely that removal of FBT exemptions will push people to cheaper Australian manufactured cars.

      This is unless you think that lack of a tax deduction will cause people to ditch cars altogether and walk to work.

      There was a good article in news Ltd. today with BMW and Mercedes complaining that this is already costing them potential sales. My sympathies extend to everyone who can no longer use my tax dollars to subsidise their luxury car while I drive a 13 yr old hatchback.

      • Sumpguard

        Haha. Nice.

  • David

    As a person who salary sacrifices vehicles presently, I say. About time. It is a scam. The old system of bracketed FBT rates depending on annual kms driven just encouraged blatant waste. 1 year I drove 40,000 kms, of which less than 1,000 was work related. The current model was a little more environmentally friendly. But, it is still just bad tax policy.

  • Darryl

    And life goes on.

  • KiddingMe

    I wouldn’t care if they changed it, but left it as is for locally built vehicles. Might be the injection the local market needs.

    I’d much prefer to be in a Mazda 6 than my Camry, but I feel better knowing I’m supporting the local industry.

  • LC

    Or, like I suggested in the last article about this, he could just exempt locally made cars. It’ll still bring in money, yet at the same time not hurt our local industry.

    Oh and concerning NLC Leasing axing 75 jobs after the announcement, knee-jerk overreaction much?

  • MD

    Seriously, can anyone enlighten me? Many public servants such as nurses & teachers in Qld (perhaps other States too) where awarded vehicle salary sacrifice some years ago as part of their enterprise bargaining packages ie it wasn’t seen as claiming a work expense but rather the preferred (& no doubt cheaper!) way of the Govt giving them a salary rise at the time. Where do they stand now as there will be nothing to log?

    • Phil

      No, you have that wrong. True that public servants such as nurses have salary sacrifice arrangements. But it’s not about paying them less – they have to be “paid” the money to be able to salary sacrifice it. There are exemptions to FBT for hospitals etc, so the nurses etc can salary sacrifice about $9k a year which they pay no income tax on, nor do they pay any FBT.

      These provisions are unchanged. So it looks likely that all those healthcare, emergency services workers etc currently enjoying these taxation benefits will continue to receive them just as they do now. They should still be able to salary sacrifice a car entirely for private use – their payment summary for tax purposes will list a grossed up value of $17k, but they won’t actually pay anything nor will their employer have to report any. If the leased vehicle puts them over that limit, they may need to part pay from post tax income to avoid an FBT liability, but many do that now.

  • XR6Turbo17

    if anything it should be increased on Locally Made Cars to help the Industry, so it should be least 40% or more on local product.

  • LowRezFez

    What a joke! To help the local industry govt must purchase Ozzie cars, not imported hybrids, there should also be an FBT concession on locally made.

    How about putting policies in place that allow innovative local coys to grow, eg. Like Carbon Revolution wheels, etc, where we have a comparative advantage in IP.

    Both major parties are economic morons.

    • AJS

      Just quietly… the Camry Hybrid is manufactured here now ;) so not all imported.

  • Jonno

    I’m just a politically neutral observer! Kevin Rudd’s return was the nightmare scenario to Tony Abbott’s political aspirations as future PM. Under Julia Gillard & Wayne Swan, the coalition were rubbing their hands with glee at the prospect of being a shoo-in to power by the next election.
    Poor Julia was like Bambi being shorn at by dazzling headlights while Wayne looked like a man who lost his way & is now being cornered by street thugs in an alleyway (his strong stance on achieving a balanced or even a small surplus budget – was way off & the mining tax collection was a laugh). Simply, they were paralyzed by party politics & by their own indecisiveness going to war (election). Tony Abott played his usual game ie. as an enforcer, hammering the govt – putting in his negative views in and scepticisms on policy matters. However, if you stripped the man off his game, most Aussies would agree that the man does not come up with constructive solutions, if any. Some solutions harked back to John Howard’s time as PM which is to say, not very original! The 2 festering issues going into the elections were:-
    1. The budget deficit mainly due to the fixed Carbon Tax which was unrealistically priced. Govt spending was based on revenues that were not coming in. The mining tax had already a foregone conclusion & the fixed carbon tax was going to be an embarrassment going into the elections.
    2. The Boat people issue. By and large, Aussies, on the ground, are never in favour of letting those people in (…not debating about humanitarian values, etc). In Australians’ minds, they are economic refugees, not politically oppressed ones. This issue has to be addressed before going into the elections.
    Clearly under Julia & Wayne’s watch, they weren’t going to happen in time for the elections.
    ENTER SANDMAN (oops! KEVIN RUDD)
    One thing about Kevin Rudd, he is as decisive as he goes about. The man has evidently read SUN TZE’s Art of War. He doesn’t muck about. He fast forward the Carbon Tax issue by implementing the change over to a emissions trading scheme. Along the way, sacred cows were sacrificed ie. FBT to offset revenues loss. Under Wayne’s world, they were probably waiting until after the elections.
    Next, the Boat people issue were addressed with the decisive PNG solution – no way you’re getting in via unofficial channels is the official speak. Saw Abbott’s face in response on the telly – you could see the thunder being taken out of his election campaign! He looks totally drained – going in buck naked into the elections. Julia was continually hemming & hawing in Parliament on the Boat people issue & was caught offside with her M’sian solution. Kevin’s response – short & decisive! No ifs, no buts!

    • $29896495

      Well put

    • Darryl

      Rudd has addressed the issue in a political sense, but calling it a solution is just rhetoric for now. Wait a few years before you can call it a solution. It’s only a hop skip and a jump from PNG across Torres Strait. See what Campbell Newman says about it. K Rudd is decisive and doesn’t muck about in making announcements, sure, but results speak louder, and for all his talk, there hasn’t been much in the way of that. Which was why he was booted out in the first place. The fawning self serving media feeding frenzy will turn on him about 3 months after he (surely now) wins the election on August 31st. (My guess) And this FBT thing will raise as much as the mining tax has. He’s all bluff and bluster.
      Unfortunately so are the rest of them.

      Oh dear, this is a site about cars, we’ve all wandered off topic a bit, eh!

      • $29896495

        I don’t think you can say bluff and bluster. He said it and did. He’s been that way all along. Remember he’s only just gotten control again. The real issue is they should have gone straight back and had another election when things tied last time. Instead Gillard, (who did manage to achieve some things) got in to bed with all and sundry and we ended up with some pretty dodgy outcomes. But that’s over now. She is the past. Finally there is action. The PNG thing is purely to shut Abbott up, and could be beneficial who knows but it’s not the end of that for sure.

        • Sumpguard

          Very true. It’s not the end. Abbott said he’d scrap the carbon tax. Defused. Abbott said he’d stop the boats. Defused. Where to now? That was his only policy. So he is jumping on the media bandwagon with the FBT which is essentially tax evasion. Top guy . If he loses this election he is done. Watch the factions appear in the LNP all of a sudden and the knifes will be sharp !

          ….add in the FACT that part of Abbott’s austerity measures is to axe thousands of public service jobs (his words not mine) and his stance here is truly ridiculous.

          • Sydlocal

            Don’t take me the wrong way as I think Abbott is a fool, but I find it interesting that many of the same people who slammed Howard for the Pacific Solution (and many of the current Labor party slamming Abbott for wanting to do the same thing) for being inhumane etc are now lauding Rudd’s even harsher solution. What the. Then again, it is politics so minds can change as often as the wind!

            Personally I don’t trust any of them and both leaders are only in it for themselves. Either way we are going to be hurting. Now let’s get back to talking about cars!

          • Sumpguard

            Abbott was never going to reintroduce the pacific solution. He signed the labor government’s reversal of it because it was deemed illegal. Abbott said he’d turn the boats around. You can’t do that. The people have to be processed whether here or somewhere else.

  • We’ve all been trolled

    So hundreds possibly thousands of people losing their jobs and businesses closing down is an ‘alartmist and irresponsible’ reaction?

    Cool story bro.

    I’d like to take Bowen’s housecarjob away from him and see if he believes it is an over-reaction.

    • Sumpguard

      I wonder if you’ll be so sympathetic if Abbott is elected and gets to roll out his austerity plans which he has already said will involve the axing of “THOUSANDS” of jobs just like Newman did up here in Queensland (last count was nearing 15,000) !! .

      Where is your bleeding heart for them?

      • James

        Wow 150k people lost their jobs in QLD? I’m from there, and in public service and I think even 15k seems a bit excessive. Pull your head in.

        • Sumpguard

          Cheap.

          Clearly the comma would be an indication of the intent to type 15,000. How many do you think he has culled exactly?
          Also he announced yesterday he won’t rule out further cuts.

        • Sumpguard

          Still waiting for your figure on the job cuts.

        • Sumpguard

          Still waiting James.

        • Sumpguard

          Still waiting James.

        • Sumpguard

          As you’ve chosen to go to ground James I’ll answer it for you. 14,000 sacked so far, 430 IT jobs next year look likely to be outsourced and they won’t rule out further cuts!
          I’d suggest you pull your head in but you’d need to know how first !

          • James

            I work in IT for the government I am well aware of the cuts. We had 40 odd people go from our department, however these and many many others from other government departments were all VRs. There are a lot of places that have No Forced Redundancy (until it is wiped out next time EBAs are bargained).

            So yeah while there may be 14000+ people they were not all ‘sacked’ (forced redundancy) as you like to claim.

          • Sumpguard

            The end result is exactly the same. They won’t be replaced. Spin it how you like. 14,000 was Newman’s target. Now he is saying he can’t guarantee there won’t be more.

          • Cars

            You are the one spinning. “14,000 sacked so far” is what you said which has no truth to it whatsoever. If you can’t tell the difference between VRs being fired then it’s not surprising you are so biggoted in your comments.

  • turbodewd

    Novated leasing is middle and upper class welfare. I enjoyed one of these leases until last month. I am on 6-figures and my car was/is used only for private purposes. A joke of a tax code we have!

    And not only that, the vast majority of cars acquired under novated leases are imports!

    The govt says two thirds of leases are taken out by those on $100k+ gotta love it! LOL

  • JamesB

    Abbott is just annoyed that his chances of finally becoming PM are dented once more. He seemed to be poised to unseat Labor with Gillard’s increasing unpopularity, but sorry, Rudd was reinstated, hahahahahahaha!

    • Jonno

      Abbott’s problem is that his one & only game plan was throw bricks & stones at the ALP & at Julia in particular on his way to the PM position. What he didn’t devise was a strategic Plan B in case Kevin Rudd came on board – as this was already on-going within the ALP & well-publicized in the media. He stuffed up!
      In that analysis, he didn’t look particularly PM material with his poor foresight & planning. He has himself to blame for this. He will become the Coalition’s version of Kim Beasley – a 2-time election loser if he loses this election.

      • Sumpguard

        He looked positively drained on the news this evening.

  • Glen

    They have to keep a record for 12 weeks in a five-year period. It’s not a big deal.

    • Don Quay

      Yes, that’s right. I’ve just started my log again this month. I do it for twelve weeks and this is the first time since the 2008-09FY. Hardly an imposition, regardless of what Happy Joe Hockey says about “continuous record keeping”. More BS from Abbott and Hockey supporting a tax rort based finance industry.

  • $29896495

    Would you like to give clear example of what you are talking about? And gillard did cry not that that means anything.

  • Matt

    Once again zaccy, wrong, in fact cars and srt too, what exactly did Rudd stuff up? Greedy business men put those untrained guys up in roofs to install insulation… Supplying them with metal clips nonetheless, lol, yet it’s somehow rudds fault that greedy men trying to get their hands on government funds employed the wrong people with no regard for their lives…. Right all Rudd? No, now what else has he exactly stuffed up? No boat people garbage please… The un was coming down on us about Nauru back then and now, it’s a dump…. An expensive dump, I hope png makes a better go of it then them (huge riot at Nauru, place is pretty much destroyed now). So what else zaccy? Hmm what did you do with your ruddy $900? Give it strait back to the ATO? Doubt it

  • Yetiman

    You are a tough macho guy. Who’s going to shoot? you……..

  • Tony Abbotts No1 Fan

    And the ignorance continues, they are illegal immigrants, they are asylum seekers as determined by the UN

    Once their applications for asylum are processed, then they are either declared eligible for asylum or declared illegal, in which case they are then deported.

    Your lack of humanity is pathetic, I wonder what your ethnic heritage is?

  • Yetiman

    By the way, I found your comment offensive and embarrassing.

  • Dave

    I’d like to shoot offensive, narrow minded people, mind standing still?

  • Zaccy16

    yes she did but because of the praise in parliament

  • Matt

    No coalition lover can give examples, only repeat slogans with no substantial backup. It’s a reflection of the intelligence of the bulk of this country, sad isn’t it.

  • $29896495

    What?

  • Zaccy16

    she was holding back tears in parliament the next day

  • Yetiman

    He is probably a descendant of Ivan the terrible.

  • Jonjdjskfeksh

    It is clear they are NOT mere asylum seekers but migrants who wan to jump the queue and game the system.

    If ALL they want is SAFETY, they could have stopped at ANY of the several OTHER countries they passed on the way to Aust.

    When one is HOMELESS or BATTERED, any home or room or shoe box is paradise. But these people want a MANSION – Australia.

    Many of these people are moneyed to afford paying people smugglers $1500-2000 per family member. And yet, they refuse to get and WAIT FOR proper visas like everybody else.

    Their first ACTION towards Aust is to BREAK its laws. Open your eyes people. Dont be PC just to be “cool”. Once your jobs are sent overseas, YOU might not have ANY CENTRELINK $$$$$ pension left. They have been GIVEN and SPENT ON these people. How would you FEEL THEN? Generous still?

  • $29896495

    So what? She was a fake crier, what difference does it make.

  • Sumpguard

    So did I. I reported it.

  • Guest

    Just here for the troll obviously.

  • Sumpguard

    Paid? So anyone that doesn’t swallow Abbott’s lies is a paid troll? Is that all you have in defence of that imbecile? Read back and open that right eye of yours just this once. I responded to David’s stream of dribble .I didn’t initiate it . I refuse to simply sit back and absorb their ignorant right wing spittle and bile without a challenge. All those that agreed are deaf too?

  • Darryl

    Wow, your point is so much more compelling with all those caps.

  • Zaccy16

    rudds main problem that he jumps to these polices without thinking of the consequences, thats why he was kicked out in 2010, i actually bought a nice Panasonic lcd with that $900 but was thinking all the time as spending it how can we afford this!!

  • Sumpguard

    So you spent the $900 rather than handing it back after calling labor wasteful? LOL. You are officially a contributor to the debt you keep bleating on about. The debt is ok so long as it looks after you interests in other words. And you sent the money to Japan yet here you are claiming to be concerned about Aussie jobs. Too funny.

  • Zaccy16

    What tv can I buy that’s made in aus?

  • Sumpguard

    Do you really think it is about the TV?
    FFS Zaccy .Snap out of it!

  • Max

    Please. Ivan the Terrible has been historically responsible for about 4500 deaths and executions. not long before his death he issued a decree where he pardoned those whom he killed and publically reinstated those whom were judged. Even though it was clearly too late but he also even attempted to compensate those who lost the loved ones to Ivans action. Which really pales into insignificance when compared to “enlightened” European rulers who had many 10s of thousands killed and if anything boasted about it. Why doesn’t Hitler get a mention then? Or Stalin?