lease cars will they be back

[brettv]

hi all
lease cars will they be back now we have a change of government???

[cs123]

Abbott said he opposed the changes to the legislation and it has never been changed. So I would say Yes.

[brettv]

i'm hoping so
bring on a sz update territory, hopefully titanium!!!

[bobthebilda]

Originally Posted by brettv

hi all
lease cars will they be back now we have a change of government???

Yes, Ford will now sell an extra 50 local cars a month due to more certainty with the Leasing arrangements, but they will lose 200 local sales a month due to relaxation of the enforced "Buy Australia" policy for government fleets and lose many many millions of dollars a year in government subsidies.

[RANGEREST]

Originally Posted by bobthebilda

Yes, Ford will now sell an extra 50 local cars a month due to more certainty with the Leasing arrangements, but they will lose 200 local sales a month due to relaxation of the enforced "Buy Australia" policy for government fleets and lose many many millions of dollars a year in government subsidies.

Is this fact, or are you just guessing?
I hope this Buy Australian policy for government fleets stays compulsory.

[PepeLePew]

Lets take a little care that this does not turn into a political thread please....or its life will be short.

[bobthebilda]

Originally Posted by velvet

Is this fact, or are you just guessing?
I hope this Buy Australian policy for government fleets stays compulsory.

It was a bit tongue in cheek, but people go on and on and on about how the FBT changes screwed car sales. It didnt screw car sales, it may have lowered the local sales a bit. When people need a car, they get a car. They dont say Oh i need a new car, its now going to cost me a few grand more, I will blow all the money instead on a holiday. At worst, people have simply shifted expectations on cars they can now get. Which in a normal world (without distortions caused by tax benefits), is the normal way people make decisions.

The liberals are far more free market orientated than labor. A car is a car. One doesnt need a $35,000 car to drive a public servant around, when a $20,000 car does the same thing, and someone who wants to lease a car should not be forced to lease a car that they dont want.

They will relax purchasing policies (my view), and they have already stated they will lower subsidies. The local manufacturers have alot more to lose from these policies, than changes to the FBT.

[jpd80]

Well, I hope we go back to the pre-2001 statutory FBT levels, that seemed to work well for most people and the industry.

0 – 15,000 km.....................26%
15,000 – 25,000 km ...........20%
25,000 – 40,000 km............11%
More than 40,000 km ...........7%

[PepeLePew]

jpd80, I suspect, while I'd like this being a high km driver, those levels won't be restored. FBT does need attention and reform, it just has to be approached in a ordered methodical way, consultative, and staggered. FBT may not represent mass volumes but if it it one more nail in the coffin of the industry it's one more nail it doesn't need :(

And I say that as someone that leases, I'd lose, but I recognize the benefit may have had it's time and place and could only respect change where it is due.

[MrMaestro]

Yeah the legislation hasn't been brought in, but leasing companies were advised by the ATO to act like it was, from day 1.

With no plans to ahead with it they could be back in business tomorrow one would think.

[csv8]

Tony cann't be sworn in as PM until the 16th..but can start changes, now.
He didn't sound supportive of the car industry prior to the election..see what happens now...

[devilcv8]

Originally Posted by jpd80

Well, I hope we go back to the pre-2001 statutory FBT levels, that seemed to work well for most people and the industry.

0 – 15,000 km.....................26%
15,000 – 25,000 km ...........20%
25,000 – 40,000 km............11%
More than 40,000 km ...........7%

As my lease just finished I'd reconsider doing another one if the above levels came back, but with the job slashing in public service about to happen, I think I'll make do without.

[Magna]

Here is a link to the open letter Tony Abbott sent to the car industry:

http://www.smartsalary.com.au/WorkAr...leasing.com.au

[GT0132]

Originally Posted by devilcv8

As my lease just finished I'd reconsider doing another one if the above levels came back, but with the job slashing in public service about to happen, I think I'll make do without.

I think the levels were changed from a tiered system to a flat 20% regardless of kms travelled before Rudd/Bowen stuck their snouts in the trough.

[Guzz226]

Originally Posted by GT0132

I think the levels were changed from a tiered system to a flat 20% regardless of kms travelled before Rudd/Bowen stuck their snouts in the trough.

I think it was under Gillard it happened?

[RSgerry]

I received an email today through my employer that as it wasn't actually introduced and there has been a change in government, it is business as usual.

[Auslandau]

Originally Posted by RSgerry

I received an email today through my employer that as it wasn't actually introduced and there has been a change in government, it is business as usual.

That is good news. It did have a massive impact on new car sales instantly. 1 company I know of leases just over 50 new cars per year which is a total of a 3 year old fleet ...... 150 odd cars. They put all orders on hold until this weekend and now is also business as usual. This is only 1 smallish company. It did screw new car sales. Yes people buy cars when they are needed ...... difference being is a new car vs a second hand car and leased through a company is very different to having to buy one privately. It made a massive and immediate impact. Doesn't matter what side you barrack for it was a little bit short in thought.

[GQ_Smooth]

Originally Posted by PepeLePew

jpd80, I suspect, while I'd like this being a high km driver, those levels won't be restored. FBT does need attention and reform, it just has to be approached in a ordered methodical way, consultative, and staggered. FBT may not represent mass volumes but if it it one more nail in the coffin of the industry it's one more nail it doesn't need :(

And I say that as someone that leases, I'd lose, but I recognize the benefit may have had it's time and place and could only respect change where it is due.

Too much of a measured response from a Ford forum. In future please use personal attacks and blame everyone else for anything that has gone wrong.

[turbodewd]

Ahh the Aussie tax system. What a joke it is.

Who would devise a system that gives tax breaks for purely private use vehicles that have no relation to one's job/business.

My lease just ended in July, what an obscenely generous lease I just enjoyed. I will gladly rort my fellow Australians again soon.

Idiocy!

And not only that, it just encourages imports! Hello...unemployment rising and we are encouraging imports!

If you visit the DFAT website you'll see cars are our 3rd biggest import.

[mik]

while it may encourage imports, there is other policy i'm sure that does far worse encouraging imports.

[tranquilized]

Wouldn't it be beneficial to the local industry to bring in Labours FBT changes as planned for imports only, leaving local built cars exempt? Seems to me it would be kinda like killing two birds with one stone right there.

[Pepscobra]

Originally Posted by tranquilized

Wouldn't it be beneficial to the local industry to bring in Labours FBT changes as planned for imports only, leaving local built cars exempt? Seems to me it would be kinda like killing two birds with one stone right there.

I'm with you on this one.

However, for some reason, the (past) Australian Government has not wanted to make 'protectionist' decisions like this in fear of damaging relations with our foreign trading partners... however it seems ok for nearly every other country to do so???

[tranquilized]

Originally Posted by Pepscobra

I'm with you on this one.

However, for some reason, the (past) Australian Government has not wanted to make 'protectionist' decisions like this in fear of damaging relations with our foreign trading partners... however it seems ok for nearly every other country to do so???

Yes no doubt it could be touchy in foreign trade/relations terms. An intelligent and articulate government could massage something like that through with minimal damage I'm sure. Wont happen then, obviously...

[GT0132]

Originally Posted by tranquilized

Wouldn't it be beneficial to the local industry to bring in Labours FBT changes as planned for imports only, leaving local built cars exempt? Seems to me it would be kinda like killing two birds with one stone right there.

The way things are headed that would mean the number of makes/models that Labours FBT changes would apply to would be next to nil.

[csv8]

Finance spokesman Andrew Robb has declared Labor's fringe benefits tax crackdown on company cars “dead, buried and cremated” with the election of the Coalition. Holden welcomed the reversal of Labor's fringe benefits tax changes that came with the Coalition's crushing election win. Holden said the FBT changes would have had “a significant impact” on its carmaking business.


South Australian Labor Premier Jay Weatherill said his first order of business with Mr Abbott would be the Coalition's policy to reduce financial assistance to the automotive sector, which he said would force Holden to close its manufacturing plant in northern Adelaide.
http://www.carsguide.com.au/news-and...aign=editorial

[brettv]

I think this rounds it off nicely
cheers brettv

11th September 2013.

Dear ,

RE: Confirmation of continuance of Statutory Method Car Packaging facilities by Coalition Government.
Following the election of the Federal Coalition to Government, the proposed changes to the statutory method as announced by the Rudd Government on the 16th of July 2013 have been scrapped.
In a letter forwarded to EPAC on the 3rd of September 2013 by the now Prime Minister elect, the Honourable Tony Abbott, EPAC along with its industry peers received reassurance and confirmation that if elected, the Federal Coalition would not move forward with the proposed legislative changes.
We have included a copy of the actual letter for your reference below.
EPAC have also received confirmation from its parent company, the RACV, that we are authorised to return to “business as usual” and there will be no change to current car packaging arrangements. We can also issue and accept approval from both drivers and their employers for statutory method overviews and the execution of novated leases.
In short and as detailed in the letter below, we are “urgently and immediately returning to normal trading activity”.
Should you have any further questions or concerns regarding this memorandum or the letter below, please feel free to contact either the EPAC Contact Centre - Novated Leasing on 1800 680 180.


Sincerely,

Daniel Perkins
General Manager – EPAC

[bobthebilda]

There must still be some fear out there that the government will have to do some changes to close up the budget shortfall. Mcmillan Shakespeare (one of the largest leasing companies), was $18.60 a share when the government announced the changes to leasing arrangements. They did fall to about $8 a share after that, but have not come back any near $18 a share since. Last trading about $12.50

[Raptor]

Originally Posted by jpd80

Well, I hope we go back to the pre-2001 statutory FBT levels, that seemed to work well for most people and the industry.

0 – 15,000 km.....................26%
15,000 – 25,000 km ...........20%
25,000 – 40,000 km............11%
More than 40,000 km ...........7%

OR

Did that lead to people driving MANY more kms than they really needed to, to get into a lower tax bracket. Thus clogging up the roads and chewing through more and more fuel.

How can that make any sense

[Matty4]

Originally Posted by Raptor

OR

Did that lead to people driving MANY more kms than they really needed to, to get into a lower tax bracket. Thus clogging up the roads and chewing through more and more fuel.

How can that make any sense

My last 2 cars, both Territory's, were leased.
I always nominated 25001km per annum to take advantage of the 11% FBT bracket. In a normal year we would probably only do 20K a year in the car but with the increase in savings via this method we took an annual holiday, usually to Qld, and drove the car, killing 2 birds with one stone.
(cheaper than flights, hire car etc, and our money was spent in the tourism sector), otherwise we may have flown overseas and no money got spent here.

[devilcv8]

Originally Posted by Raptor

OR

Did that lead to people driving MANY more kms than they really needed to, to get into a lower tax bracket. Thus clogging up the roads and chewing through more and more fuel.

How can that make any sense

Or
Did it lead to people buying new cars, doing long commutes to work,50,000km a year, all the servicing that entails vs now running an older less environmentally friendly car, perform all servicing myself?