The Federal Government’s response to the Fringe Benefits Tax (FBT) issue, a $200 million funding package, ignores the one area of the automotive industry hit hardest by the FBT changes – the retail sector. As a result of the changes to FBT, car dealers and suppliers of salary-sacrificed and employerprovided cars have had orders cancelled and laid off staff. VACC, the peak automotive industry body in Victoria, has criticised the Government for overlooking car dealers and the retail automotive industry.

The retail automotive industry is fuming it has been overlooked, again, by the Federal Government, following Monday’s announcement that $200 million will be provided to car manufacturers and $7.3 million to car suppliers.
“Our members are sick of so-called automotive industry discussions and decisions that fail to even consider the repair, service and retail sector. In this most recent example, the Federal Government has announced an automotive industry package, but failed to include the retail sector. The changes to the FBT system have hit car retailers hard and fast, with many experiencing cancelled orders and job losses.
And yet, the Government’s response fails to even mention retailers, let alone compensate them,” VACC Executive Director, David Purchase, said.
“It’s not sour grapes; we’re actually pleased our manufacture and parts supply partners will receive financial support from the Government even though the Government created this mess in the first place.
“It’s about recognition, support and respect. Nationally, our sector numbers 100,000 small businesses, employing more than 320,000 Australians, that’s 75 per cent of people employed in the automotive industry, generating $208 billion to the economy. That’s a significant contribution,” Mr Purchase said.
VACC is also frustrated the Federal Government’s announcement failed to reverse the new FBT policy.
Claims the FBT statutory formula produces a tax rort, that salary packaging companies have a business based only on a tax break, that only wealthy people take advantage of vehicle leasing or salary packaged cars, that the cars involved are luxury models and that the whole system needs ‘cleaning up’ are all wrong.
“Clearly, the FBT changes are not about closing a tax loophole or tax rort. They are not about being even-handed. They are not about equity. The changes are all about raising revenue to fill serious budgetary holes and have been made without proper consultation and forethought,” Mr Purchase said.

One Response to “FBT Issue, Again, Proves Retail Automotive Industry is Ignored”

  1. Citizens are sacrificing their salary investing on automotive where the recent changes in the FBT effects in major. Lots of issues are raising because this points to many people not to even think about the top listed automotive to purchase on.

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