Author: Barry Scott / Published Date: 27 April 2012
Categories: Novated Leasing, Consultancy, The Autopian
The Autopian
News & developments in the vehicle benefits industry l Autumn
2012 edition
The Autopian is our in-depth analysis of news & developments in the
vehicle benefits industry. It's where we explore current industry trends,
sharing our thoughts and insights into the best practice application of benefits
policy.
Our leading edge commentary and analysis provides you with everything you
need to know to remain at the forefront of vehicle benefit methodology.
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This edition included:
- FBT storm ahead?
Now the Federal Budget has changed the playing field will FBT year end cause as much anguish?
- Intelligent cities on the horizon
Foldable electric cars, an interactive wayfaring system, and a surprise from the 1920s.
- Client profile - ResMed
Guidance to tax and finance professionals looking to implement novated leasing - from Robert Zalud - Director Asia Pacific Tax.
- REVS is dead, long live Personal Property Security
New PPS Register affects novated by creating a security interest in the organisations name.
- Inside Autopia with Dane Silk
Dane Silk reveals his secret to maximising tax benefits on a Holden Ute SS-V.
- Driver survey results
“Clearly very bright people – demonstrating really strong expertise. Service and responsiveness also excellent.” Dan Peters, Google.
- Petrol price trends
Believe it or not, petrol hasn't increase by that much these last 3 months, and diesel has been heading south.
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Author: Barry Scott / Published Date: 23 December 2011
Categories: Novated Leasing, Consultancy
In July we published a blog item entitled “How will the carbon tax affect fuel prices?”
‘John’ commented on the article saying he thought the prices would definitely be affected, the only question was by how much.
So on this last day of the working year, we thought we’d have a look at the price of petrol over the previous 12 months, and see if we can draw any conclusions, or make any reasonable predictions.
Source: motormouth.com.au
It’s pretty obvious from the above chart that the prices are only trending in one direction, with an increase of $0.135 over the period.
Is the Carbon Tax responsible for this?
Well the legislation was only passed by the Senate on 8th November, and we don’t have an average for December as yet, but the average for the first three weeks is $1.41, down from November’s average of $1.44.
So the carbon tax has actually reduced the price of petrol so far..?
Efficient markets do, however, price in all available information, so as soon as it was public knowledge that the Carbon Tax was going ahead, the prices should have adjusted to reflect it. This could be why the majority of the 12 month price hike is located in the first half of the year, and then levels off thereafter.
So yet again, is the Carbon Tax responsible for this?
Well, maybe not. If the last couple of years have taught us anything, it’s that despite the tyranny of distance, Australia certainly doesn’t operate independently of the rest of the world – not any more.
Unrest in the Middle East, US debt crises, Greece, Ireland, Italy, and now a European debt crises - all of these social and economic events in the last year, have had widespread repercussions. Uncertainty prevails worldwide, and with it comes caution.
Whether we like it or not, Crude oil fuels the entire planet right now, and in an uncertain world our most important resource is not going to be getting any cheaper.
Let’s have a look at the price of Crude over the last 12 months.
Source: oilprices.com.au
The trends here reflect the first half of the year increase we saw in the price of petrol. Overall the price of crude is slightly higher than it was 12 months ago, and in that respect again it’s similar to our Australian petrol prices.
The similarities indicate that the dreaded Carbon Tax might not be the only factor here.
So what’s really responsible?
Although there are varying theories about where oil comes from, one of the most widespread and accepted is that it’s a fossil fuel, and was created by pressure, heat, and decomposing biomass over millions of years – millions of years ago.
This theory also contends that there is a finite amount, and it’s been modelled that we’ve passed the half way point – peak oil. If these theories and models are correct, then we’re down to the basic economic fundamental of supply and demand.
Following this theory to its logical conculsion, despite the minor variations possibly caused by taxes, the price of oil is only going one way - until there’s an alternative that is…
Let’s see what happens next year.
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Author: Barry Scott / Published Date: 10 October 2011
Categories: Events, Novated Leasing, Consultancy
From 18th – 20th October, professionals from around the country will gather at Remuneration and Reward 2011 in Melbourne to share ideas, perspectives, and strategies to drive organisational performance through remuneration and reward planning.
Key speakers include:
- The Treasury
- Hon David Bradbury MP, Parliamentary Secretary to the Treasurer
- Air New Zealand
- Colin Usherwood, Remuneration Manager
- Lend Lease
- Sabiha Vorajee, Compensation and Benefits Manager
- Johnson & Johnson
- Sarah McKensey, Total Rewards Manager
- IAG
- Semu Musson, Senior Manager, Performance & Reward
"This conference is a great opportunity for
R&B professionals to come together and share their best practice
information and keep abreast of the latest trends in R&B in a
rapidly changing landscape."
Natalie Inglis, Compensation and Benefits Manager
Goodyear Dunlop Tyres
Autopia of course, will be there too. In fact our very own Greg Parkes will be addressing the delegates on day one.
If you would like to attend the conference, just call Linda on 02 8307 5558 and she just might be able to organise a discount for you.
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Author: Barry Scott / Published Date: 10 August 2011
Categories: Consultancy
Dr Kjell Nordström
@ Stockholm School of Economics
A few blog items ago we promised to cover one of the talks from the AHRI conference, so here we go.
The conference was opened by one of the top management thinkers in the world - Dr Kjell Nordström of the Stockholm School of Economics.
As you would expect, he had some pretty interesting ideas, and unexpectedly some of them were similar to Mike Tysons..
Dr Kjell Nordström - Self confessed James Bond bad guy look alike
Read more about this article
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Author: Barry Scott / Published Date: 21 July 2011
Categories: Novated Leasing, Consultancy
So here it is, the much debated carbon tax.
Let’s just cut to the chase, how will the carbon tax affect fuel prices..
For most of us?
It will not have any direct and immediate effect on the price of fuel.
“Households, on-road business use of light vehicles and the agriculture, forestry and fishery industries will not face a carbon price on the fuel they use for transport."
Australian Government – Clean Energy Future
For employees who salary package their cars with novated leases – this is all you need to know, for now.
The top 500 polluting companies will be charged $23 per tonne of carbon emitted, and assuming fuel companies are within the top 500 – it remains to be seen as to whether any of these additional costs would be passed on to fuel prices.
Interestingly enough however, the price of fuel has actually gone down since the introduction of the carbon tax on 1st July.
- Average weekly unleaded petrol price for the week ending 26th June: $1.417
- Average weekly unleaded petrol price for the week ending 10th July: $1.390
Source: Australian Institute of Petroleum
In three years from now?
The Government has charged an independent research and advisory body – the Productivity Commission – with advising on a number of long-term economic, social and environmental issues, and fuel excise is on the agenda.
The commission presents its findings in three years from now, and we would not be surprised to see lower carbon-emitting fuels receiving preferential tax treatments thereafter.
This would certainly reflect what has just been introduced for some categories of commercial vehicle.
For off-road commercial vehicles?
Organisations with commercial vehicles used in an off-road situation effectively pay no excise on their fuel as a result of the fuel tax credits scheme. This tax offset facility has now been changed.
Over the next three years, the tax credits are to gradually reduce at a rate that reflects the carbon content of the emissions of the fuel concerned. After the introduction of the emissions trading scheme in 2015-2016, the credits will be based on the price of carbon – and will be adjusted on a bi-annual basis.
Industries that are exempt from this change are agriculture, forestry, and fisheries.
For all other industries – the price of fuel has just gone up.
For heavy commercial vehicles?
The Government intends to apply a carbon price to commercial vehicles over 4.5 tonnes used on roads from 1 July 2014, however this has not been agreed to by the Multi-Party Climate Change Committee.
For alternative fuels?
Renewable fuels such as ethanol, bio-diesel and renewable diesel have zero carbon emissions, and will not be affected at all.
Will it affect the Australian automobile industry?
If any of the manufacturers made the top 500 polluters list, then yes, the carbon tax would certainly have an immediate affect on the industry. Organisations that provide parts may also be included in this list , and it appears that energy is set to become more expensive too, so it would be highly unlikely for the industry to come out of this without feeling the indirect effects of the tax.
If you look at the introduction of the tax as an indicator of attitudes, it is impossible to believe that the automobile industry is not about to go through, and has indeed already begun, a massive change.
We’ll be addressing the carbon tax in greater detail in our next edition of the The Autopian.
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