The FBT tax changes will likely cause some buyers to defer the purchase of a new cars,” says the Australian Automobile Association (AAA).
The AAA is calling for urgent talks with the Government on the fringe benefits tax changes.
“Australia’s motoring clubs were, like many organisations, left stumped yesterday by the Government’s announcement that it was changing the FBT rules, effective immediately,” says Andrew McKellar, AAA executive director.
“The decision, without any consultation, will impact the family budget for hundreds of thousands of households, all of whom are being hit with higher costs, including petrol prices,” says McKellar.
“Our concern is that the lack of consultation by the Government, and no detail on the likely impact of these changes, will cause uncertainty and disruption in the financing and motoring sector – and for individuals involved in leasing a vehicle,” he says.
“Motorists already pay their fair share to the budget bottom-line, and should not be targeted to help minimise the budget impact of other policy decisions.
“These changes are a tax on safety – this has to have an impact on a key segment of the new car market. This will likely cause some buyers to defer the purchase of a new, safer car,” he says.
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