Changes afoot for Novated leases

[pologti18t]

$4b Public Service, Fringe Benefits Cuts to Terminate Carbon Tax

"Tightening the car fringe benefits tax with savings of $1.8 billion over the forward estimates;"

[ill0gitech]

That appears to be the total amount of detail so far.
More info from the ABC: Carmakers warn against scrapping fringe benefits tax to fund carbon price policy

"Removal of statutory formula method will apply to contracts entered into after July 16, 2013. It will be effective from April 1, 2014.
Government says car log book apps now make operating cost method easier to calculate."

[FSI 220]

Well that gets through then that has F&^%$ed me...

I will be keeping the roadster for a while longer now...

What possible mandate can this government have? Put it to the election surely, the labor/greend/independent coalition that forms government is no longer a governing unit.

I wish a no confidence motion went through so this charade can finally have the knife run through its neck

[Ideo]

Well that gets through then that has F&^%$ed me...

I will be keeping the roadster for a while longer now...

What possible mandate can this government have? Put it to the election surely, the labor/greend/independent coalition that forms government is no longer a governing unit.

I wish a no confidence motion went through so this charade can finally have the knife run through its neck

Boo-hoo. Middle class welfare removed from people who don't need it.

I have a lease. I got it when it made sense. It's changed. Deal with it. It was a rort that people exploited and it has been closed down.

[noone]

Changes afoot for Novated leases

Agreed. Savings have to come from somewhere, I don't see anything in those articles that offers any real detail to get worked up about.

[team_v]

Also, the changes would have to get through a now hostile senate so the early progression to a Euro-linked ETS isn't going to happen.

As such, the flow on cuts shouldn't happen either.

[wai]

Remember, this is election mode, even though the writs for the election have not been issued. As such, these are all "election promises", and as such can be broken without batting an eye lid. Both sides are guilty of having done this in the past, and nothing says it will be different now.

On the changes to FBT and vehicles on lease, what this now means is that lessees will have to maintain a log for 12 weeks of "typical" usage every 5 years. The calculations from that log will establish the business:private split for the remainder of the 5 year period. At the moment, the rules allow an automatic claiming of only 20% private use.

I don't have my vehicle on lease, but to claim depreciation and business costs, I have had to do this every 5 years for the 23 years I have been in business. Maintaining the log is not an issue. I think that what many objecting to this are afraid of is that the log might show a higher than 20% private use, and this will cost them more.

[wai]

Agreed. Savings have to come from somewhere, I don't see anything in those articles that offers any real detail to get worked up about.

Also, remember business do not pay tax, they collect tax. When a business is taxed, they pass that cost on to the consumer thereby collecting it for the government. The best example of this is the so-called "employer contribution" in superannuation. What happens is that the employee sees this taken from the base salary.

So NEVER get too happy when you see higher business taxes as all this means is that it will be passed on to the consumer in one way or another.

[FSI 220]

Boo-hoo. Middle class welfare removed from people who don't need it.

I have a lease. I got it when it made sense. It's changed. Deal with it. It was a rort that people exploited and it has been closed down.

Thats cool, if you feel strong about the matter you could always go ahead and zero your statutory co-contribution that way you can sleep better...

If Australia votes Kevin in fine, a government voted in by the people can do what it wants .... until then I hardly think they should change anything ...

But that is orrite, my hard working, middle class SITKOM ways are going to be the ruin of this nation!

and we all know it has nothing to do with log-booking...