Again and like the last number of years, the Labor Government implements new policy without any forethought to its effects on industry, people or safety.
The latest round of plans is to dump the Carbon Tax. However, to pay for the budget shortfall on this, he and Mr Bowen plan to revise Fringe Benefit Tax regulations where the new tax rules which come into effect immediately are expected to affect one third of all new cars on the road and could lead to massive job losses across the automotive and finance sectors due to an anticipated sharp drop in vehicle sales.
It could also seal the fate of the manufacturing future of Holden which are already looking at withdrawing from Australia and are in current negotiations with Government & Union bodies to resolve the pull-out.
The finance and insurance industry implications surrounding employee Novated Leasing are massive with a multi-billion dollar industry to be hit the very hard. The impact to the corporate and commercial sector under the new regulations, pay more tax and requirements to keep a full travel log book. To add salt to Labor's injury, most government run industry's (health, defence, etc) provide Novated Leasing options to their staff.
The current Treasurer, Mr Bowen responded to the automotive industries backlash at the proposed legislation by saying "the world has moved on from when this system was introduced in 1986". Mr Bowen, is this multi-billion dollar industry just able to 'move on'?
Call for the Labor Government to just increase the current FBT rate @ 20% to 25% and leave the industry and its drivers alone.