Selectus Salary Packaging has now had the chance to review the announced changes to Australia’s Motor Vehicle Fringe Benefits Tax concessions and needs to highlight the key issues missing from public debate of the disastrous impacts of this "ill-conceived" proposal from the Rudd Government that will be bad for business and bad for hundreds of thousands of Australian households.
"Kevin Rudd is the issue here with a return to midnight decision making and complete lack of industry consultation," says Selectus CEO Paul King.
"The announcement puts at immediate risk the employment of a significant proportion of our organisation with wide ranging impacts on the salary packaging industry alone – estimates are 2000 job losses by the end of this month and up to 20,000 by Christmas. This does not take into account the further losses that will come from the broader automotive sector."
Selectus believes that the proposal is already having a massive and instant impact on vehicle sales with most providers placing on hold the settlement of thousands of motor vehicles until the matter is resolved.
Selectus wants to make clear that the misconceptions being promulgated by the government that the majority of vehicles are for high flyers and BMW drivers, the average salary of our customers who use this benefit is $71,000 – far removed from the executive salaries suggested by the government, and the average vehicle value is less than $30,000. A significant proportion of our client base are teachers, nurses, and public servants, not executives.
Selectus joins the chorus of stakeholders and calls upon the Federal Government to announce a moratorium on the proposed changes to allow appropriate industry consultation to occur.
Selectus commenced Salary Packaging and Novated Lease services more than 15 years ago and has emerged as a leading, Australian owned, Melbourne based provider employing in excess of 140 employees across Australia. Selectus provides outsourced salary packaging and vehicle leasing services to over 1200 Australian employers.
P: 03 8615 4863
M: 0417 031 684