$200mill package to Ford, Holden, Toyota to offset FBT changes

[bungarra]

If they were truly supporting the Aussie car manufacturers, the easy thing to do would be to say no FBT on Australian manufactured vehicles. How many people would then be buying GT's instead of an imported sports model? How many would be back in G6 and G6E's for company cars? I bet a lot, especially if it cuts down the business paperwork involved with managing the FBT side of the fleet management.

[BHDOGS]

The fact there slashing and burning is mostly howards fault by bringing in unsustainable tax breaks and middle class welfare to get relected so many times while times were good. I believe the words the devils gotta get paid is appropriate.

[jimmyxr6t04]

I should have paid 33k tax, but because of my novated lease i paid 28k tax... BUT, i had to contribute 10k for the FBT... I saved some GST too... In reality, i didn't save much at all, actually it has cost me. But, the convienence of it all suited me. I took a reduction in gross + net salary to have a car provided and all costs included.

The dealerships serviced my car, i didn't shop around for el-cheapo tyres etc etc..

What next, an unemployment tax/hand out to assist all those affected?

In contrast to leasing, my investment property wiped off another 11k tax for me, so that's where my money will be going now that i can't lease anymore.

[Outbackjack]

And to balance the books the government has resorted to theft??

http://www.news.com.au/money/cost-of...-1226690750065

[jpd80]

Originally Posted by Outbackjack

And to balance the books the government has resorted to theft??

http://www.news.com.au/money/cost-of...-1226690750065

Had that person's bank account been recorded in his will, the government wouldn't have a leg to stand on.
That's the problem with getting old, accounts become inactive and slip through the cracks into government coffers.

[Outbackjack]

Originally Posted by jpd80

Had that person's bank account been recorded in his will, the government wouldn't have a leg to stand on.
That's the problem with getting old, accounts become inactive and slip through the cracks into government coffers.

You would think that hey... But now ANY bank account that is untouched for 3 years get stolen by the government.... That is so corrupt I am speechless.

[karj]

For heavens sake, it does not get stolen by the government.

Inactive bank accounts are claimed by ASIC. The amount of time used to be 7 years, now it's 3.

This money can then be searched for, and reclaimed by the owner of the bank account or their descendents.

In many respects, the changes are good. Inactive bank accounts are often forgotten and banks are unable to notify the owner, because they have forgotten to update their address or have passed away. When ASIC claim the account, bank fees and charges are no longer slugged to the account and it gives an easy way to search for any unclaimed money. The changes also mean that the ASIC claimed money will now attract interest in line with CPI inflation (which had not been the case previously).

In my opinion, the changes are good, but 3 years is a bit short - I think the inactivity period should be 5 years (only because the reclaim process is a bit inconvenient).

[KIWI-1]

+1000

[Outbackjack]

Originally Posted by karj

For heavens sake, it does not get stolen by the government.

Inactive bank accounts are claimed by ASIC. The amount of time used to be 7 years, now it's 3.

This money can then be searched for, and reclaimed by the owner of the bank account or their descendents.

In many respects, the changes are good. Inactive bank accounts are often forgotten and banks are unable to notify the owner, because they have forgotten to update their address or have passed away. When ASIC claim the account, bank fees and charges are no longer slugged to the account and it gives an easy way to search for any unclaimed money. The changes also mean that the ASIC claimed money will now attract interest in line with CPI inflation (which had not been the case previously).

In my opinion, the changes are good, but 3 years is a bit short - I think the inactivity period should be 5 years (only because the reclaim process is a bit inconvenient).

I dont care who takes the $$ It all ends up going to the government to squander. This precedent is very disturbing.... Whats next? Super accounts...oh thats right its already up for grabs....What about floating share accounts?? I have a few of those that I have not looked at for at least 10 years..... Thats the whole point of long term saving strategies. And I bet the process to get your money back is made as difficult as possible so that most simply give up trying.....

Maybe this is where the $$ are coming from to prop up the FBT losses.

[KIWI-1]

Originally Posted by Outbackjack

And to balance the books the government has resorted to theft??

http://www.news.com.au/money/cost-of...-1226690750065

The Government "stole" it from the bank where it was earning 0% interest and put it in an account earning interest at the rate of the CPI.
The family can fill in the paperwork to get the money from ASIC if they wish.
Or wait until they receive a letter from one of the businesses set up to milk people, I mean help people, wanting to get their unclaimed money.

[2011G6E]

I would guess maybe fifty percent of the depot out here...possibly more...have lease cars. Cars, not utes, not trucks, not work vehicles, but family cars.

And nearly every one of them is now worried as hell about what is going to happen...they all were used to getting a brand new family car every couple of years through salary sacrifice, but now they mostly won't. A lot of guys even get second lease cars, usually smaller ones, for their wives or kids. All that business is now crapped all over by a government trying to drive a typically-Labor class-driven propaganda campaign.

These people aren't rich fat cats, they aren't executives with Mercedes Benzes and BMW's...they're ordinary working people. 70% of the people who took advantage of leasing made less than $100,000 a year, but that's not how Labor has portrayed it, using ridiculous statements about "wealthy fat cats" and similar rubbish.


More big handouts to the motor industry? Hey Rudd...how's that big savings you think you're going to make out of crapping all over lease vehicles going now...?

And as for statements about it being a deliberate tax rort...what a load of rubbish. You're just playing into Labors hands and believing the drivel they are dishing out.
Why can't the working man get some advantages out of the tax system? It's easy enough for "the big boys" to minimise their tax and no one bats an eyelid...but let the ordinary wage slave maybe get a little advantage, and the world comes to an end. How exactly is Joe Average getting a lease vehicle and reducing his taxes a little going to impact anyone else? No one has bothered about it before.

I would hope they close all the other loopholes then...do away with family benefits, why should other taxpayers subsidise your damn kids? Do away with that stupid $18,000 tax free threshold...why should other taxpayers make up the difference for people on low incomes? How about doing away with tax returns all together? I mean, you don't get much back (I paid $36,000 tax past year and got $400 back), so why not just let people pay their taxes and be damn happy with it...why should they expect any personal advatnage out of the system!
Do away with negative gearing and other tax breaks people buying investment properties get too...landlords won't mind...they're all in as a charitable thing aren't they?

Oh...and how about getting rid of all those government cars too...doesn't Rudd have his own damn car he could use to get around in?

[Agile]

How many people ?

"This is a band-aid on poorly constructed policy that will do substantial damage to an industry that employs more than 300,000 hard working Australians," said Mr Penberthy. "If this policy is not reversed a significant number of jobs will be lost."

By the end of the campaign it will be a million people.

Get a grip ya clown

If it gets up it will be the best policy Rudd and his mob ever came up with

[2011G6E]

Wouldn't it all be easier just to leave things the way they were?

I would lay cash money on a bet that a month or two ago, no one outside industries where you could access a lease car even worried about workers with a lease car...the "problem" probably never even crossed their minds, as it didn't...in any real way...affect them at all.

In my near-thirty years of working life before starting this job where a great number of people have lease cars, I never once recall ever even thinking about lease cars or what it would be like to have one. The thought never crossed my mind, as it was nothing to do with my work life.

[Buntz]

Originally Posted by Outbackjack

And to balance the books the government has resorted to theft??

http://www.news.com.au/money/cost-of...-1226690750065

And that would be better than the bank keeping it?

[zilo]

Just another FBT/Govt bashing /sook thread...

Nothing to see here, move on....

[naddis01]

Did I hear correctly over the weekend that there was no modelling done at all on how the FBT changes would impact on car sales?

[jpblue1000]

Bloody middle class!
always complaining about something.
Pay too much tax, not enough of it given back, I want more spent on this, I dont want to pay anymore, they took this away, they applied that, I lost this I didnt gain that, it's not fair, bloody dole bludging, queue jumping asylum seeking terrorist homos, they didnt ask me, I didnt vote for that PM I don't like it.

JP

[GREGL]

Originally Posted by jpblue1000

Bloody middle class!
always complaining about something.
Pay too much tax, not enough of it given back, I want more spent on this, I dont want to pay anymore, they took this away, they applied that, I lost this I didnt gain that, it's not fair, bloody dole bludging, queue jumping asylum seeking terrorist homos, they didnt ask me, I didnt vote for that PM I don't like it.

JP

Are you serious . everyones a homophobic racist . Last time I heard AUSTRALIA was a democracy and as such had freedom of speech . If you choose to interpret a collective dissent with the way this country run as against your principles just vote on nov. 8 if the outcome doesn't suit you your are quite welcome to go elsewhere . no one is stopping you.
Ever stop to think that the "middle class" is the one that always carries the can . It is never the over 200k a year who can afford it ,it is always the 40 - 150 k plebs that 1 can't protest and lobby because they are too busy working and 2 maybe it pees off this majority of the population that actually contribute the major part of the tax income for the govt.

[jpblue1000]

Originally Posted by GREGL

Are you serious... Last time I heard AUSTRALIA was a democracy and as such had freedom of speech .

Yes I am! Australian Middle class is always bloody complaining, Im not stopping anyone from complaining just pointing out that all the middle class seems to do is complain. They never do anything about it. complain and moan but never get of the keyboard to do something about it. 'Time poor' middle class too busy to fix their problems, always thinking they could do better but never lifting a finger to do it, Keyboard experts who know maybe 10 percent of the issues, who then attack anyone who dissagrees with them, then cry time poor when challenged to do something about it. Blaming the man for keeping them down.
Bloody lucky country for sure as its not its people who have driven it forward! just dum-luck
JP

[IDT]

Originally Posted by jpblue1000

Yes I am! Australian Middle class is always bloody complaining, Im not stopping anyone from complaining just pointing out that all the middle class seems to do is complain. They never do anything about it. complain and moan but never get of the keyboard to do something about it. 'Time poor' middle class too busy to fix their problems, always thinking they could do better but never lifting a finger to do it, Keyboard experts who know maybe 10 percent of the issues, who then attack anyone who dissagrees with them, then cry time poor when challenged to do something about it. Blaming the man for keeping them down.
Bloody lucky country for sure as its not its people who have driven it forward! just dum-luck
JP

I know I shouldn't bother, but how have you contributed to society lately?

[KIWI-1]

Originally Posted by naddis01

Did I hear correctly over the weekend that there was no modelling done at all on how the FBT changes would impact on car sales?

Yep

[Bossxr8]

Ford think overall industry sales will drop by 10%, and locally made cars by 20%. Bravo Rudd, you moron. I'd wonder how much of that $1.8 billion saved would disappear due to lower GST, stamp duty, rego costs etc that line the governments pockets on every car sold, not to mention all the people who work for novated lease companies who have already lost their jobs and are no longer paying tax. It's another mining tax all over again, it will save nothing.

[Fordman1]

Will do nothing to repair what has been damaged due to policy.

[jpd80]

While the tougher "buy Australian produced cars" policy for government departments is welcome news,
it is completely undone by Rudd's earlier wheel clamping of business substantiation for novated leases.

A reversal of the latter while embracing the former would be a glimmer of hope to beleaguered local industry.

[csv8]

Won't help FORD, as no FORD cars will be made in Aus from 2016..

[Fordman1]

This won't help the local industry, most are Novated leases !

[zilo]

In an interview on Sky news Tony Abbott announced today that his govt would not be financially supporting the local car makers.

He said that they weren't producing what people wanted so should be allowed to close.

[csv8]

Ford will scale back production of its Falcon in the lead-up to the federal election after recording the model's worst sales performance in history.

The iconic Australian-built large car has slumped to an all-time low, selling just 594 sedans in July according to VFacts sales figures released on Monday, just months after the company announced it will close down its Broadmeadows and Geelong manufacturing facilities in 2016.

Ford says last month's proposed FBT adjustments had a major impact on Falcon sales at the end of July and has arranged with the Manufacturers Workers Union to roster 12 ''down days'' in August and September to prevent excess inventory.

"Falcon was impacted by the proposed FBT changes in July," Ford spokesperson Sinead Phipps told Drive.
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"And we imagine that will stay the same until the election is decided and whether the legislation is confirmed through Parliament.

"As a result, we have negotiated with the unions to take a number of down days through August and September and we will continue to monitor the situation after that."
http://news.drive.com.au/drive/motor...805-2r8uo.html

[karj]

Originally Posted by csv8

Ford will scale back production of its Falcon in the lead-up to the federal election after recording the model's worst sales performance in history.

The iconic Australian-built large car has slumped to an all-time low, selling just 594 sedans in July according to VFacts sales figures released on Monday, just months after the company announced it will close down its Broadmeadows and Geelong manufacturing facilities in 2016.

Ford says last month's proposed FBT adjustments had a major impact on Falcon sales at the end of July and has arranged with the Manufacturers Workers Union to roster 12 ''down days'' in August and September to prevent excess inventory.

"Falcon was impacted by the proposed FBT changes in July," Ford spokesperson Sinead Phipps told Drive.
Advertisement

"And we imagine that will stay the same until the election is decided and whether the legislation is confirmed through Parliament.

"As a result, we have negotiated with the unions to take a number of down days through August and September and we will continue to monitor the situation after that."
http://news.drive.com.au/drive/motor...805-2r8uo.html

I recall the sales of Mitsubishi 380's slumped below 500 after the announcement of the closure of Tonsley, so I'm not surprised that the sales of the Falcon has also slumped following the announcement of the Broadmeadows closure.

The question I have is how much of the slump is attributed to the closure and how much is attributed to the changes to FBT?

It would not surprise me if Ford is overstating the effect of the FBT changes because it is a much more convenient excuse for why sales are down and it also allows them to shift the blame for poor sales from Ford management to the Australian Government. Dowling reports that new car sales have actually hit a July record despite the changes and given that the FBT changes were only announced in late July, I think this claim by Ford Australia may be more spin than reality. I welcome Ford Australia to challenge that assertion by releasing their figures and modelling for scrutiny.

I'm not saying that FBT changes won't affect Falcon sales in the coming months, but it is a highly dubious claim that "FBT changes hit Falcon sales hard" in July.

[jpd80]

Even if FBT and business use decisions were reversed today, there's no guarantee that sales would ever
come back to Falcon, once buyers take flight they normally choose alternatives like going with other vehicles.

No, I have a feeling that Ford knows sales are not coming back any time soon, if ever.
If twelve down days a month through to Christmas, you can bet that more decisions will be made.

2014 Falcon is like the star entertainer turning up to a concert hours after everyone gave up and went home...

So sad.