Motor Clubs Call for Urgent Consultation on FBT Changes


The peak national motoring and mobility organisation, the Australian Automobile Association (AAA), is calling for urgent talks with the Government on the fringe benefits tax changes announced yesterday.

"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," AAA Executive Director Andrew McKellar said.

"This decision, without any consultation, will impact the family budget for hundreds of thousands of households, all of whom are already being hit with higher costs, including petrol prices", said Mr McKellar.

"Our concern is that the lack of consultation by the Government, and no detail on the likely impact of these changes, will only cause uncertainty and disruption in the financing and motoring sector and for individuals involved in leasing a vehicle," he said.

"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," he said.

"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 said.

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