CHANGES TO FBT ON CARS: THE FACTSPosted July 18, 2013
The Rudd Government is terminating the carbon tax and moving to a floating price a year earlier, giving cost of living relief to millions of Australians.
To do this we made the choice to tighten the requirements around tax benefits associated with salary packaging a car a under Fringe Benefits Tax (FBT) rules.
Mr Abbott and Mr Hockey have claimed these changes will cause massive damage to the car industry but the biggest threat to the car industry in Australia is the Coalition themselves, who have confirmed they would cut at least $500 million from auto industry assistance.
There has been a lot of misleading information in relation to the FBT changes so it is important to ensure that inaccurate assertions are corrected.
These facts include:
Even putting aside the context of the changes to carbon pricing, the FBT decision is good tax policy. It protects the tax base for the vast majority of Australians who do not benefit from the salary packaging arrangements.
The Australian people are used to the negative politics of fear from Mr Abbott and Mr Hockey, who have made an art form of it for the past 3 years. It is no surprise they are stoking fear again over these changes because they have no credible policies themselves.
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