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Changes To Car Leasing Benefits

Lexus Nerd

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Today, the Australian Federal Government announced plans to change the Fringe Benefits Tax laws, affecting thousands of taxpayers planning to obtain a car through a novated lease.

Before today, novated leases allowed employees to obtain a vehicle through their employer. The fringe benefits tax payable could be calculated through a "statutory method"; under this method, the net tax payable was significantly less than paying for a car through post-income-tax dollars, regardless of how much of the car's use might have been for personal purposes.

Should the planned changes pass parliament (which we don't know for sure that it will, until we know the Opposition's standing on the issue, and/or the result of the forthcoming election), the statutory method formula for FBT calculation will not be available for all contracts entered into on or after today.

This means that thousands of taxpayers will no longer be able to save thousands of dollars on a new car.

What do you think of the changes? Were you considering a novated lease? If so, have you changed your mind about buying a new car?

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I don't think it will effect me but I have two thoughts with this government.

1. Typical rob peter to pay Paul.

2. It will be like all their policies the budget wont meet actual figures. In other world their 1.8 bill saving will end up in the millions no Billions.

My 2c

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What people require they will have it, cost doesn't matter? But somehow they think if they get these things at cheap price after all everything is growing then why not price.

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No increase to super if/when the libs get in. Not that super really helps the budget short term. Next to go should be negative gearing to bring housing prices back to earth.

Too much abuse of the leasing system, people claiming two sets of tyres per year (with different size wheels!), insane gap between new car and second hand car prices. I'd love to see the car companies bring down prices so people could afford a new car because of this, but I'm sure they'll continue to collude together.

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^^new car prices have not changed that much in actual dollar terms for quite some time. If you look at new car prices relative to wages the cost of a new car has gone down. Issue is that because there are so many new cars on the market and they are affordable it has taken its toll on the used car market

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