Car industry to hold FBT crisis meeting today

Meetings called as figures show public sector workers will be most affected.

All sections of the car industry -- representatives from manufacturers, importers, leasing firms and dealerships -- are due to hold a crisis meeting at Toyota Australia’s head office in Melbourne this afternoon.

The meeting has been called as new figures show more than 80 per cent of those affected by the changes to Fringe Benefits Tax rules are public sector workers.

A survey of 100,000 novated leasing contracts by the Australian Salary Packaging Industry Association found: -- State and Federal Government public servants represent the largest portion of novated leasing business (33 per cent) ahead of those in charities and public health (28 per cent), police and teachers (21 per cent) and the private sector (18 per cent).

Up to 100 people representing businesses affected by the Rudd Government’s sudden overhaul of company-car tax rules will meet to discuss the impact of the changes and what action they can take. “Toyota is not holding the meeting, we are hosting it because we have the meeting room space,” said Toyota Australia spokeswoman Beck Angel.

The meeting is understood to have been organised by McMillan Shakespeare, one of the largest salary package firms in Australia which suspended trading on Tuesday immediately after the announcement of new Fringe Benefits Tax rules. Earlier today News Corp reported that 8500 new-car deliveries have been halted and up to 3000 jobs could be lost in the salary-packaging fleet sector.

In the past two days both Holden and Toyota have come out in strong opposition to the changes to company-car tax rules, which will add $1400 to $4000 to the annual running costs of about 320,000 new cars sold each year.

The survey by the Australian Salary Packaging Industry Association also found:

-- The average price of a packaged car is just $34,500
-- Just 5 per cent of packaged cars are in the luxury category (BMW, Mercedes, Audi)
-- 35 per cent are made by local manufacturers Toyota, Ford and Holden

-- More than 70 per cent of company-car drivers earn less than $100,000

“The Prime Minister and Treasurer have been at pains to say the industry has been consulted in the lead up to this decision. I can confirm that no-one in the novated leasing industry was consulted,” said Leigh Penberthy, President of ASPIA.

“The environment will also be impacted. New cars are more energy efficient and this proposed change is a massive disincentive for motorists to upgrade to newer, more energy efficient vehicles. “This is poor policy made on the run. The Rudd Government must reconsider its position.”