Motorists miss out as Government admits mistake on FBT


The peak national motoring organisation, the Australian Automobile Association (AAA), says motorists have again been forgotten as the Federal Government acknowledges its FBT changes are a mistake and tries to correct the error with more taxpayer money for the car industry.

"This announcement is a clear acknowledgement that the FBT changes have been a mistake and the government is now tying itself in knots trying to buy the car industry's silence," AAA Executive Director Andrew McKellar said.

The Federal Government has today announced $200 million will be handed to the car industry in the wake of the FBT changes. The FBT changes will hurt motorists and are a tax on newer and safer vehicles.

"No one should be fooled, this is nothing more than a quick fix which throws taxpayer's money at a problem that didn't exist until the FBT changes were announced," Mr McKellar said.

"Motorists are the ones who have been unfairly targeted by these changes yet the Treasurer has made no attempt to meet with motoring groups," he said.

"The FBT change is a tax hike on motorists and discourages the purchase of new, safer and more environmentally-friendly vehicles," Mr McKellar said.

"The average age of a vehicle in Australia is ten years, meaning there are already too many vehicles on the road that don't meet modern safety or efficiency standards."


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