Blog & Updates

The final word on FBT: Joe Hockey - “The car industry, is back open in Australia”

Author: Barry Scott / Published Date: 6 November 2013

Categories: Events, Novated Leasing, Consultancy

What began on the 16th July 2013 with an announcement from Labor, is finally over, with an announcement from the Coalition.

Transcript from Joe Hockey's announcement today:

"Today is another step forward in clearing the debt in relation to the true state of the budget. When we came into Government, my colleagues and I were advised that there were 96 announced but unlegislated, tax and superannuation initiatives, left behind by the previous Government.

Today I’m announcing that we are dealing with this backlog of 96. Four of the 96 have been dealt with in our mining tax and carbon tax repeal packages........

......Of the 92 we are definitely not proceeding with seven initiatives.

The first initiative is the one that we campaigned loudly against during the course of the Federal Election, which was changes to the fringe benefits tax rules on motor vehicles. We fully funded that during the election campaign – not proceeding with that initiative.

I declare here today, that the car industry, is back open in Australia, and it is back open because we are not proceeding with Labor’s flawed proposal to change the rules on FBT for motor vehicles."

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An Election Win for ALL Australian Employees

Author: Barry Scott / Published Date: 9 September 2013

Categories: Events, Novated Leasing, Consultancy

The election’s over, and the rules around novated leasing have not changed.

1. Employees do not need to have business use to benefit.
2. All employees can still save thousands on a car every year.

Last year:
- Novated leasing put $1.8 billion into employees’ pockets
- Autopia put $5,770 into the average driver’s pocket


550,000 employees currently benefit, and now everyone realises they could have been savings thousands all along, we expect this number to increase dramatically.

If you don’t offer novated leasing to your staff, they’ll soon vote with their feet. Contact Greg Parkes for more details, and to find out how novated leasing increases engagement, lowers payroll tax, and delivers a more profitable business.

For more details on how novated leasing works, RSVP to a webinar below:
- Wednesday 18th September @ 7.00pm AEST
- Thursday 19th September @ 12.30pm AEST
- Wednesday 25th September @ 7.00pm AEST
- Thursday 26th September @ 12.30pm AEST

PS. We're expecting an overwhelming demand, so please
        book quickly to ensure you get the time spot that suits best.


Details on how to save $9,720 on a Mazda 3
Details on how to save $9,265 on a Golf
Details on how to save $10,524 on a Commodore

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Who's Next? Petition to Protest FBT Changes

Author: Barry Scott / Published Date: 19 August 2013

Categories: Novated Leasing, Consultancy, The Autopian

The Australian Salary Packaging Industry Association has created a website where you can easily sign an online petition, alerting any future Government to the groundswell of disapproval for the proposed FBT changes.

To sign visit www.whosnext.com.au - it only takes 30 seconds and you’ll be helping hundreds of thousands of Australians.

WHOSNEXT

Who’s going to be affected by the changes?

Employees in the not-for-profit sector
Where organisations rely on novated leasing to help compete with the private sector to attract and retain talented employees.

Employees in the health sector   

Nurses and aged-care workers for example, who won’t be able to access the tax benefits required to supplement the lower income that’s unfortunately a fact of life for most health professionals.

Employees in the Australian vehicle manufacturing sector

21% of the 1.1 million new vehicles sold annually will be affected*, having a significant flow-on effect to the broader motor vehicle industry which employs 313,000 people**.

For more information on who else will be affected visit www.aspia.com.au

*Access Economics Pty Limited and Lateral Economics, Mar 2009. VFACTS, Dec 2012
**FCAI.


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Election date set, FBT changes hang in the balance

Author: Barry Scott / Published Date: 5 August 2013

Categories: Novated Leasing, Consultancy, The Autopian

So the election has been called. On the 7th of September, the people of Australia will vote on whether they wish a Kevin Rudd Labor Government, or a Tony Abbott Coalition Government, to steer the ship for the next three years.

The outcome will have a significant impact on the vehicle salary packaging industry.

If a Kevin Rudd Labor Government is elected.
Legislation will be drafted, if it hasn’t already been completed by that stage, that will abolish the statutory method of calculating FBT on novated leases and company cars. If the legislation is passed, then all statutory method benefits will cease to exist from 1st April 2014.

Before 13th July 2013,
if an individual entered into, or made a material commitment to any kind of novated lease, then this will have no affect at all on the lease. It will continue to the end of its natural term.

After 13th July 2013,
if an individual entered into, or made a material commitment to a (statutory method) novated lease, then the tax benefits will only be available until 1st April 2014.

Operating cost method novated leases are completely unaffected by any of this, and will continue to benefit those who have a considerable amount of business use for their cars.

In fact, many people who currently operate their vehicle with a novated lease using the statutory method (because it is much simpler), may find that the operating cost method continues to deliver the tax savings they have experienced in the past. 

If a Tony Abbott Coalition Government is elected.
No legislation altering the existing statutory method of calculating FBT on novated leasing and company cars will be written. All existing novated leases will continue to run, as is, uninterrupted.

Before or after the 13th July 2013,
if an individual entered into, or made a material commitment to any kind of novated lease, it will continue to run to the end of its natural term completely unaffected, as will all novated leasing going forward.

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Coalition will not support FBT changes

Author: Barry Scott / Published Date: 19 July 2013

Categories: Novated Leasing, Consultancy, The Autopian

Transcript from today's announcement. For now, no more needs to be said.

"Over the last few days, since the Government, suddenly, out of the blue, made this announcement of a 1.8 billion dollar hit on motoring, the coalition has been consulting with the range of people in the industry...

It’s clear, that this is a serious blow, to an industry under pressure. This greedy grab from the Government is costing sales today, it’s costing jobs today.

And to give this important industry for Australia’s future, the reassurance that it needs and deserves, Joe and I can announce today…  that the coalition will oppose this in opposition, and will not proceed with it, in Government.

There are three essential problems with the Government's proposal.

The first.There has been no consultation, no prior consultation whatsoever, so it is fundamentally bad process from a Government which never gets the process right.

Second. It means far more paperwork for ordinary Australians from a Government which has massively increased the paperwork burden on the people of Australia.

And third.
It’s another tax hit, on people who have suffered enough, when it comes to tax increases from this Government.

It demonstrates that this Government, just doesn’t get it, when it comes to middle Australia. It just fundamentally fails to understand middle Australia.

The Government, of course, has said that this is a tax hit that will only impact on rich people driving BMWs. Hang on a minute, Kevin Rudd told us just three weeks ago that he wanted to stop the class war? As soon as they’re under pressure, the class war, comes out again.

I tell you who this is impacting. It’s impacting on motor manufacturers, on dealers, on leasing business, but above all else, it’s impacting on ordinary Australians…

On nurses, who get a car, to do home visits.
On charity workers who get a car to help the poor.
On sales people – on modest wages who need a car to do their business.

These are the people who have been impacted by this proposal from the Government, it must not go ahead, and it won’t go ahead under the coalition."


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