BUSINESS CONFIDENCE SLUGGED BY “CAR BAD” TAX

19/07/2013

FLEETCARE MEDIA RELEASE

 

BUSINESS CONFIDENCE SLUGGED BY “CAR BAD” TAX: FLEETCARE

Extra $4,000 tax a year for company car drivers

18 July 2013

Business confidence has taken a slug this week as business owners realise the carbon tax has been replaced by a ‘car bad’ tax of $4,000 a year, according to Nigel Malcolm, Chief Executive Officer of Fleetcare, Australia’s largest independent fleet management company.

Nigel Malcolm says that Fleetcare offices have been inundated with calls from client companies seeking clarification on the tax changes and expressing alarm and indignation
about the unexpected tax-grab by the Government.

Fleetcare estimates that over 70% of managed fleets use the statutory method to account for car use (i.e. not the log book method).

Nigel Malcolm says: ‘A business owner now faces the stark choice between telling staff they will earn $4,000 less because of the tax, or taking that same amount of money out of company profits. Log books offer no real solution because business must bear the cost of managing and verifying travel logs. That’s 12 weeks of data per car every 5 years. But if a driver’s job changes, if they’re given a new business territory, if their home or business address changes or there is any material change for the driver, then the driver will need to do another log book. When you have a fleet of vehicles of any size, it’s a massive undertaking.’

ENDS


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