It’s not often that I’ll write about governmental issues. But last week (like many other’s I imagine), I was one very frustrated businessman.
The proposed changes
announced by the Federal Government for new FBT laws mean that a whole lot of motorists who might currently novate their vehicles and claim tax deductions (and
therefore pay an element of FBT), now have to validate their business use. This change doesn’t just affect people employed in the motor industry (with an estimated 20-
30% of annual sales attributed to company cars), but also nurses, teachers, sales reps and many other professionals.
I am certainly not opposed to change, but the way this change has been thrust upon business without any consultation is ridiculous.
As of Wednesday I had several
sales staff anxious for their livelihood given some of the companies they deal with purchase vehicles under this novated system, not surprising when you hear that
organisations like Qantas have frozen all their new car purchases under its salary sacrifice scheme whilst they seek clarification from the federal government.
On Friday the liberal party came out and said that they wouldn’t proceed with these changes, a move I obviously support. However, as business operators, we need
more certainty than a “potential” electoral victory sometime in the next few months in order to make decisions about the structure of our businesses.
I look forward to a little more clarity this week from Kevin Rudd’s team and I ask that, this time, they consider the massive impact of their decisions on a whole lot of
people who rely upon all those in Government to make decisions in the best interest of all……