Car-makers blame fleet drops on FBT plans
A major car-maker has blamed proposed changes to the Fringe Benefits Tax for a drop in orders over the last fortnight.
Hyundai is claiming it has seen a thirty-seven per cent drop in fleet orders for the last two weeks, blaming the tax changes which will remove the statutory method of valuing the taxable value of a car fringe benefit.
John Elsworth, COO of Hyundai Australia, told reporters that the changes were like “throwing a hand grenade” at the industry, saying “it is difficult to see how it will be a positive move.”
According to The Australian Fleet Lessors Association (AFLA), forward orders dropped 20% in the fortnight after the announcement, with the first two weeks of August seeing the drop reach 37%.
Thought there has been no end to criticism of the planned changes to the FBT, some reports say that the statutory formula has been abused by many organisations for some time – either through imports of expensive cars or vehicles for personal use.
Others have welcomed the removal of the tax concession and strengthening of regulatory systems.