Perth, WA -- (SBWIRE) -- 12/03/2013 -- When former Prime Minister Kevin Rudd announced his proposed changes to FBT on cars, Fleet Network were very vocal on the ramifications for the motor vehicle and salary packaging industries.
The change would have saved the government approximately $1.8 billion in an effort to fund the removal of the carbon tax. The proposed changes would have been a burden for employees who rely on work vehicles and reduce the flexibility employers can provide.
The announcement by Rudd caused significant disruption across the automotive and salary packaging industries. Following the election, business has slowly picked up with the number of enquiries back to around half of what they were prior to the announcement.
We were very pleased with the formal announcement in early November from The Hon Joe Hockey confirming that the Coalition Government will not be proceeding with these changes. We are confident that given this announcement, the industry can begin to recover and get back to the levels of business it was before.
Mr Michael Hadfield, General Manager of Fleet Network said, “Whilst some sections of the media and Mr Rudd tried to portray salary sacrificing as a benefit for highly paid executives, the reality is that it is middle income Australians.”
He continues by adding that “A lot of them are government employees who use the ability to sacrifice part of the salary to help them purchase and maintain a vehicle, which they could not afford to do so with after tax dollars. This supports the struggling car industry and helps average Australians get into a good and reliable vehicle of their own choice.”
The salary packaging industry was decimated by the announcement by Rudd and limped to the Federal Election unsure of what was in store for them. Following the election the industry has slowly picked up but the public is still unsure of where they stand in regard to sacrificing part of their salary to purchase a motor vehicle.
The announcement by Mr Hockey puts beyond doubt that salary packaging is back on the agenda for average Australians to help them use pre-tax dollars to purchase and run a motor vehicle.
This makes obtaining a novated car lease easy for employees who qualify. The announcement by The Hon Joe Hockey is good news for both employees and employers.
About Fleet Network
Fleet Network was established in 1997. We have since helped a countless number of clients throughout Australia obtain a vehicle. We are committed to providing exceptional customer service and work closely with you to help you finance your ideal car with a novated lease.
Visit the Fleet Network website at http://fleetnetwork.com.au for details about our services or call us on 1300 738 601 to discuss your available options.