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Anger over tax changes and confusion

Posted on: August 11, 2013 by Platinum Direct

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The Federal Government has decided against making any changes to its revised fringe benefit tax (FBT) policy, despite job losses and calls from the automotive and financing industries to reconsider. Several fleet and leasing companies have been forced to sack workers because they claim the changes to the FBT scheme has brought the industry to a near halt.

Just as importantly the three car makers are worried the changes will hit new vehicle sales and the finance sector has claimed the changes will end the salary packaging industry.

“The changes will remain,” a spokesman for the Treasurer’s office has said in response to all approaches.

Speaking about the changes, and the requirement to keep a log book for a three month period every five years, Treasurer Chris Bowen said: “Now, within the first 12 month period, the individual concerned can pick the three months they want to maximise their chances of getting the maximum tax concession.”

The Australian Taxation Office website states: “The 12-week period chosen should be representative of the car’s business use.”

Tony Abbott has said the Federal Opposition will remove the changes if it takes power at the election.

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