The Australian Motor Industry Federation (AMIF) and Australian Automobile Dealers Association (AADA) were two of more than 30 organisations that today welcomed the Coalition’s decision to oppose the Rudd Government’s unilateral change to the Fringe Benefits Tax (FBT) arrangements on salary packaged and employer provided cars.
AMIF, the national voice of 100,000 retail, service, repair and recycling automotive businesses, and AADA the national body of 4600 motor dealers; were among representatives from all parts of the automotive, salary packaging, finance, consulting, legal and tax industries who gave further evidence of the impact of the FBT changes to a specially convened meeting by the Federal Coalition in Melbourne this morning.
AMIF and AADA CEO Richard Dudley congratulated Opposition Leader Tony Abbott, Shadow Treasurer, Joe Hockey, Shadow Finance Minister Andrew Robb and Shadow Minister for Innovation Industry and Science, Sophie Mirabella, for showing what proper consultation looked like by seeking counsel from the automotive and affiliated industries and making a decision based on fact rather than expediency.
‘The Opposition’s approach stands in stark contrast to the contempt, arrogance and autocracy shown by the Rudd Labor Government on this issue,’ Mr Dudley said.
Some of the impacts of this policy-on-the-run to date include:
- 75 staff sacked from salary packaging company. Another company remains in suspension on the Australian Stock Exchange.
- Increased job losses reported likely across several industry sectors. A dramatic reduction in new car sales nationwide.
- The used car industry has also been impacted with reduced sales. Medium sized car retailers likely to incur additional costs of approximately $150,000 p.a not including additional administration costs and loss of sales.No correlation between the figures used by Government and those of industry with the total number of people impacted likely to exceed a minimum 600,000 and more likely one million Australians.
- The average price of a packaged car is just $34,500.
- Just 5% of packaged cars are in the luxury category.
- 35% are made by local manufacturers.Over 70% of drivers with salary packaging arrangements earn less than $100,000 including charity workers, teachers and police.
- Policy detail appears unavailable - the Australian Tax Office refers callers to a ‘Fact Sheet’, despite complex associated FBT rulings.
Mr Dudley said the industry would do everything in its power and resources to alert members, the industry and the public to the impact of this poor policy.
Richard Dudley CEO AMIF & AADA Contact Number: 0412 146 828