Motorists Affected By Recent FBT Crackdown Should Consider Other Options

SOUTHPORT, Australia - Aug. 5, 2013 - PRLog -- Gold Coast, QLD, 5th August, 2013 - In the wake of the government’s recent changes to the FBT novated lease rules for company cars, a Queensland-based business is urging those negatively affected to consider alternative finance options for vehicles. Credit provider 1800 Approved is determined to counteract the tax increase by offering alternative lease and loan options at the lowest possible rates to motorists for whom salary sacrifice/novated lease is no longer an affordable choice.

“As much as the government thinks cutting out the FBT option is going to give them a increase in tax revenue, I don’t believe they have thought about the consequences,” says Rodney Michail, CEO of 1800 Approved (http://www.1800approved.com.au). “Hundreds of people in the leasing industry will face unemployment and the motor industry stands to lose millions of dollars in revenue. That’s why we’re doing all we can to support those affected, by offering advice and extremely low interest rates on many different types of leases and loans. We want Australian motorists to get the best deal and encourage continued growth in the motor industry at the same time.”

At a press conference in July, Prime Minister Kevin Rudd announced his intention to save a potential $1.4 billion over the next four years by scrapping the statutory 20% fringe benefit tax formula for company cars. The Treasury predicts that this move will affect up to 320,000 motorists, however car industry experts put the number at 500,000, all of whom will be forking out an estimated extra $1400 per year.

The sudden decision to put an immediate end to company car tax concessions has already led to disastrous consequences for auto manufacturers and dealerships. One manufacturer reports the discontinuation of one car model within days of the announcement, and 10,000 vehicle orders have been cancelled within the first week. Meanwhile, companies specialising in novated lease and salary packaging products are already being forced to let staff go. The Australian Salary Packaging Industry Association predicts that as many as 3,000 jobs are at stake.