Do You Salary Sacrifice a Vehicle

[Rowy]

If you salary Sacrifice or lease a business vehicle or have a company car you need to see your tax man. The Prime Minister Kevin Rudd announced today that you are required to keep a log book 100% of the time to prove business related usage. They used to assume 20% private in their FBT calculations. Now your company or your govt dept will be liable for the FBT on all kilometres that are not work related and you will have to prove usage.....every trip......every K......every day. Interesting one for the tradies. It will go back to the days of Tax investigators photographing Vehicles with signage on them on the beach and holiday destinations and asking to see the personal trip in your log book after you submit your tax.

 

[philmud]

Bugger! Presumably my lease company will get in touch, but I'll have to have a read/listen.

 

[Rowy]

Bugger! Presumably my lease company will get in touch, but I'll have to have a read/listen.

Not well thought out......the new car industry and Sal Sac providers will have an opinion I'd imagine.

 

[GrumpyPaul]

All assuming they get re-elected....

 

[Rowy]

All assuming they get re-elected....

It's just a regulation change. It starts next Tuesday according to them.

 

[bradsbrew]

I thought I only had keep the diary for a 12 week period to get the percentage?

 

[Liam_snorkel]

Chris Bowen - "it doesn’t affect the 3.6 million Australians who directly claim the fringe benefits tax relief through their tax return". That's me. Yiew.

 

[brettprevans]

But claiming FBT thru tax doesnt get u the full benefits.
Rudd has no fkn idea. Well his ministers dont. Its a cash raising scheme cause they are in the poo. Take it from an govt advisor.

I personally have no issue with it. I log all my travel for records. Better safe than sorry.

 

[jlm]

Meh. Do that anyway as I'd rather run my own vehicle than work out of a Mitsubishi Express (the company cars for the mob I do a bit of work for). Its no big deal, becomes second nature after a while, sorta like wiping after taking a ****.

 

[Rowy]

Chris Bowen - "it doesn’t affect the 3.6 million Australians who directly claim the fringe benefits tax relief through their tax return". That's me. Yiew.

Except you can't use the old formula. Just watching the news and it would appear that it is only for new contracts............and then I wonder what will happen after the election.............anyway if you work in the new car industry or parts suppliers, vehicle servicing, after market parts then I'd look at some 'retraining' if I was you.

 

[Rowy]

It's the salary sacrifice people that will cop it in the arse BIG TIME. Very popular in most industries, public and private.

 

[mxd]

I don't think salary sacrifice (novated lease) is who it affects ? I think there hitting the company cars (the sales guys etc..) Utes and vans are exempt.

I assume salary sacrifice is still K's ??

Scary if it is novated lease, salary sacrifice ?

 

[Liam_snorkel]

I claim less than 5000km so never used the percentage formula.

 

[mxd]

I think I was wrong, but I think it's from contracts today (or when reg passed) not back dated ?

 

[philmud]

Chris Bowen - "it doesn’t affect the 3.6 million Australians who directly claim the fringe benefits tax relief through their tax return". That's me. Yiew.

Phew, me too!

 

[Rowy]

Novated Lease died today. New contracts only. That will change to all contracts at the next budget just watch.

 

[philmud]

Hmmm it's been a good lurk for me. As much as anything else, I like having a fuel card - makes me feel like I don't pay for petrol!

 

[Josh]

Bugger! I've just started getting a quote for a novated lease car.

No wonder it's been a couple of days and I haven't received the written quote yet.

 

[razz]

From my reading yesterday it will apply to leases that use "statutory" method as compared to "employee contribution" method. So if your like me and make a post tax wage deduction to offset the FBT it won't affect you. Like the Bob Brown changes from last year it should only affect new contracts (although I haven't read that bit yet)

 

[Fents]

Does anyone have a link to an article with the details in it?