A leading automotive industry accountancy firm says changes to the fringe benefit tax (FBT) system will hurt dealers..
“The car industry and business in general will be hit directly by planned changes to the tax regime to offset the scrapping of the carbon tax,” says Brett Fowler, motor industry services partner at Moore Stephens chartered accountants and business advisors.
Some tightening in the tax allowances for cars and other ‘work related’ expenses was widely expected as a result of eliminating the carbon tax, according to Fowler. “However, the changes aim to limit only genuine work-related travel for the purposes of calculating fringe benefits tax.”
Fowler says: “The additional administrative burden and cost to business, the reduction in employee provided benefits and the impact to the automotive sector; it is all negative and ill conceived.”
Join the conversation