Victoria Premier Denis Napthine
Federal Labor FBT Changes Threaten Victorian Jobs
Victor P Taffa
The Federal Labor Government’s fringe benefits tax (FBT) changes pose a significant risk to the car manufacturing industry and component makers across Victoria, Premier Denis Napthine said today.
“The Victorian Coalition Government calls on the Federal Labor Government to reconsider urgently this ill-conceived and precipitous policy change.” Dr. Napthine said.
“We urge that if the Federal Labor Government is not prepared to abandon this policy, it should at least consider reviewing the scope of the new application of the tax to exempt locally-produced cars.”
Dr. Napthine said he had commissioned an urgent report into the potential impacts on jobs and investment across the Victorian car manufacturing industry due to Federal Labor Government changes to FBT tax treatment of cars leased by more than 300,000 Australians.
The preliminary outcomes of this analysis by the Victorian Coalition Government indicate the policy could cut production volumes for local car-makers by 10,000 units a year, with a consequence of falling demand for components across the entire supply chain.
“This would represent an unwelcome blow at the worst possible time to the local car manufacturing industry.” Dr. Napthine said.
“On 7 June this year, the Federal Labor Government committed to work with the Victorian and South Australian Governments to promote wider use of Australian-made cars by government agencies throughout Australia.”
“These changes announced by the Federal Labor Government this week appear at odds with that approach.”
“The Federal Labor Government must review these ill-considered tax policy changes that will prejudice jobs and investment in our local car industry.” Dr. Napthine said.