Autopia in the Financial Review
Author: Barry Scott / Published Date: 10 June 2012
Categories: Novated Leasing, Consultancy
Mark Fenton-Jones interviewed Greg Parkes for his note ‘From the Editor’ in the Financial Review on Thursday 7th June.
The topic under discussion was the escalating cost of company cars faced by organisations across the country, as a result of last years FBT changes.
Mr Fenton-Jones wrote:
“Greg Parkes, the director of sales at novated leasing specialist Autopia, estimates that a business which purchased a $37,000 Toyota Camry in 2011 that travels about 30,000 kilometres a year, would cost $3,703 a year in FBT under the old legislation. If purchased after May 2011 under the new legislation, the FBT cost will have almost doubled by the end of the 2013-14 FBT year to $6,733.
The prospect has prompted lease operators to observe that the sooner companies with fleets with operating leases review their situation, the better financial position they will be in the long term.
Calculations provided by leasing specialists show that for some high-income earners who currently receive a company vehicle under an operating lease, switching to a novated lease can be a cheaper option for the business.”
Full article here for AFR subscribers