Author: Jeffrey Morton / Published Date: 16 May 2013
Categories: Novated Leasing, Consultancy
If you have a novated lease, a car salary packaging program in your organisation or a fleet of company cars on the books – the budget last night held no nasty surprises.
From 1 July 2014, company cars will become a little more expensive (see below example) but apart from that, the changes are nowhere near as significant as those introduced in the 2011 Federal Budget, where the statutory rates for calculating Fringe Benefit Values were flattened to 20% across the board.
The phase-in period for those changes is to be completed in April 2014, and we're in the final steps of compiling the analysis of the 2013 FBT year, so if you're signed up to receive The Autopian you'll be able to see how the changes are affecting the industry in the next edition.
The only upcoming change that will impact our industry won’t actually come into effect until the 2014-2015 FBT year.
To coincide with the Medicare Levy increasing from 1.5% to 2.0%, from 1 July 2014 the Fringe Benefit Tax rate will increase from 46.5% to 47% - a small increase that will really hit company cars more than novated leases, as the FBT gross-up rate will increase from 2.0647 to 2.0802 (where an employer is entitled to a GST credit) and 1.8692 to 1.8868 (where an employer is not entitled to a GST credit).
Company Car Example:
This is the difference it will make to a $40,000 company car.
-$40,000 x 20% (statutory rate) = $8,000 (Fringe Benefit Value)
-Pre 1 July 2014: $8,000 x 46.5% x 2.0647 = $7,681 (Fringe Benefit Tax)
-Post 1 July 2014: $8,000 x 47% x 2.0802 = $7,822 (Fringe Benefit Tax)
Every $40,000 company car will cost $141 more a year from 1 July 2014 on.
It’s as yet unclear, what will happen to the ‘gap’ between the beginning of the next FBT year on the 1 April 2014, and the introduction of the new rate on the 1 July 2014 as the relevant legislation isn’t available just yet. As soon as it is however, we'll let you know.
Read More
Author: Barry Scott / Published Date: 18 December 2012
Categories: Events, Consultancy
Steve Wozniak - Apple Co-Founder
& Chief Scientist @ Fusion-io
Speaking at the World
Human Resources Congress in Melbourne this September, Steve Wozniak came across as a gentle, approachable guy – who seemed
almost embarrassed by the esteem that he is held in by the rest of the world.
He took the stage as the
keynote speaker, and he told his story. He talked about the start of Apple, and
how a lack of knowledge can sometimes be a good thing – because you don’t know
what you’re not supposed to be able
to do.
As a computer engineer,
and self confessed geek, he seemed an odd choice for a human resources
conference. However as the HR
fraternity questioned him at the end, there were important lessons unearthed in
his experiences – in particular in relation to fostering and nurturing talent.
Getting the best out of
your employees is surely the most important determining factor for a successful
business.
“Ideas don’t just pop out of a computer.”
They come from a fertile
and active mind, and Steve’s story gave us all hints at how to hang on to those
employees who could very well become game changers.
He spoke about his time at
Hewlett Packard, which is where he worked before leaving to start Apple. The engineers at HP were
allowed to use the ‘parts department’ for their own use at home. For computer
geeks this was a perfect set-up, and encouraged employees to develop their own
projects in their spare time.
Despite this rather
attractive fringe benefit, HP obviously failed, because they let someone like
Steve Wosniak walk out the door.
This was the topic of one
of the most insightful questions asked at the end, and one which should
actually concern all areas within a business, not just HR.
“What could HP have done to hang on to you?”
Steve paused for a brief
moment, and said that he’d thought about this a lot, and that hardly anyone had
ever asked him that.
It came back to that parts
department, and the fact that HP had loads of very talented people working away
on their own, yet failed to harness their out-of-hours creativity. He also referenced Google,
and how 20% of Google employees’ time is devoted to ‘their own
projects’.
“Something like that” he
said, “may well have meant that I wouldn’t have left to start up on my own”. He went on to say how he bumped into Bill Hewlett years later, and when they met he just shrugged his
shoulders and said “Ah, you win some you lose some..”
So how do we win more, and
lose less? Allowing intelligent
individuals free reign to develop their own projects is hardly a difficult
concept to grasp. And the benefits are easy to see – Apple is one of the
most valuable companies in America.
Why do so many of our
organisations struggle with it then?
Well there’s no easy answer to
that one, but maybe, it’s worth trying to find one..
Read More
Author: Barry Scott / Published Date: 10 December 2012
Categories: Novated Leasing, Consultancy, The Autopian
The Autopian
Leading edge commentary on the vehicle benefits industry l Summer
2012
Sign up here
- Top three trends from 2012
A shift in the distribution of tax savings across employee demographics, FBT on company cars set to double (possibly triple!) and luxury leases on the rise.
- Intelligent Commentary: Steve Wozniak
How to hang onto key employees. Pearls of wisdom from one of the most successful men in the world.
- Just Love Cars: 50 years of Bond Cars
Skyfall marked 50 years of Bond, a perfect time to review the amazing cars Bond has driven over the years.
- Inside Autopia with Paul Moffat
One of our Key Account Managers takes you behind the wheel of his new family friendly ute.
- Driver survey results
"I appreciated his knowledge and explanation in a language I could understand. I would not hesitate in recommending Autopia to colleagues and friends :).” Michelle Burman , Eli Lilly.
- Petrol price trends
A downward trend for pertrol and diesel, but will it be reveresed before the Christmas break..?
Read More
Author: Barry Scott / Published Date: 23 November 2012
Categories: Novated Leasing, Consultancy, Just Love Cars™
Not only do we have the World’s Best Driver’s Guide, but we’re pleased to announce that the Autopia corporate identity has won a Bronze in the ‘International Corporate Media Awards’ in Germany.
As if any more evidence was required that the Germans know a thing or two about cars.
Read More
Author: Barry Scott / Published Date: 23 October 2012
Categories: Novated Leasing, Consultancy
Until yesterday, employees were able to salary sacrifice the cost of the products and services provided by their employers. A nice little ‘fringe benefit’ depending on who you worked for.
After Wayne Swann’s Mid-Year Economic and Fiscal Outlook (MYEFO) announcement however, it’s a benefit that is no more.
If you were fortunate enough to have entered into an arrangement before Monday 22nd October, then you’ve been extended a period of grace, until 1st April 2014. After that the tax benefits will be removed.
This has absolutely no affect on novated leasing.
It does however, leave novated leasing as one of the few remaining, financially significant benefits that an employee can access.
As an example of how beneficial it can be, the average Autopia driver received the equivalent of a $10,065 pay rise last FBT year, just by packaging a car.
Read More
