Federal Opposition Leader Tony Abbott
Federal Shadow Treasurer Joe Hockey
Federal Shadow Minister for Industry Sophie Mirabella
Coalition Will Not Support Labor’s FBT Hit On Cars
Victor P Taffa
The Coalition does not support Labor’s $1.8 Billion hit on the car industry. If elected, a Coalition government will not proceed with these changes, Federal Opposition Leader Tony Abbott said.
“Labor’s tax hike will cost 320,000 Australians an average of $1,400 per year. The decision, made without any consultation, has already damaged the car industry.”
“Labor has offered no proof for their claims about rorting of the FBT arrangements. Instead, it appears to be yet another Kevin Rudd rush-job. Mr. Rudd is all talk and no action, but when he finally does act he ends up destroying people’s jobs.” Mr. Abbott said.
“The impact of this decision has already been felt across Australia. In just 48 hours: NLC leasing has made redundant 75 staff; McMillan Shakespeare is in a trading halt; Qantas group has frozen all motor vehicle purchases; the sale of Smartcompany is now on hold and car yards in major cities are already reporting lost orders.”
“It is estimated that 35 % of all salary packaged vehicles are made by local manufacturers Toyota, Ford and Holden.”
“This means even more pressure on local jobs in South Australia and Geelong as well as in car dealerships across Australia. Even South Australian Labor Premier Jay Weatherill has said it is “a bad decision”.” Mr. Abbott said.
“For all Australian businesses who decide to maintain a car fleet these changes mean even more red tape and further costs to the bottom line.”
“For an industry still reeling from the impacts of Labor’s carbon tax, this bad decision has come at the worst possible time.”
“This decision is not just a hit on the car industry, but on thousands of Australians who have work-provided cars or who have salary-sacrificed vehicles.” Mr. Abbott said.
“It is estimated by industry that 75 % of drivers with salary packaged vehicles earn less than $100,000. This is another hit on families who are seeking to get ahead and plan their futures with confidence.”
“There’s been the carbon tax, the changes to the private health insurance rebate, the increased superannuation taxes, the increased child care costs, the loss of promised family payments and now changes to the arrangements for the FBT on cars.”
“Since the announcement of these changes on Tuesday, the Coalition has been consulting with the car industry, leasing and tax experts as well as small business. It is clear these changes provide an unnecessary and unexpected shock to the industry which will put jobs and the economy at risk.” Mr. Abbott said.
“The Government has said this permanent change is necessary to pay for its one year change to the carbon tax. We do not accept this argument.”
“The Coalition has already detailed how it will pay for permanently abolishing the carbon tax as well as keeping tax thresholds and fortnightly pension and benefit increases. Our plans do not need a $1.8 Billion new tax hike on cars, introduced without warning or consultation.” Mr. Abbott said.
Prime Minister Kevin Rudd is too smart by half. The Fringe Benefits Tax (FBT) announcement on the Car Industry is more evidence of policy making on the run. The Prime Minister has made this announcement knowing full well that he does not have to face Parliament or attempt to force these changes through Parliament before an election. If he did he would recall Parliament immediately. Car industry firms are already laying off workers due to a drop in orders for new cars caused by this announcement.
The same applies to any changes that he seeks to make on boat policy. Prime Minister Kevin Rudd is running away from the Parliament and hopes that his ‘Mr. Sheen’ image with voters will win him an election that he will announce at any time.
Mr. Sheen was a television commercial for a household cleaning product. The television commercial featured a man with a white rounded hair cut with spectacles that bears an uncanny resemblance to Prime Minister Kevin Rudd.
Editor Victor P Taffa strongly supports Railway Expansion. The FBT announcement is an attack on the Car Industry. Editor Victor P Taffa supports the expansion of every industry in Australia. Similarly an Emissions Trading Scheme is an attack on industry and employment. In a country as large as Australia, a Car Industry is needed as well as a modern Railway Industry that includes Railway Expansion in every State and Territory, High Speed Rail and a Rail Ferry to Tasmania.