News

Ipswich company car sales crash

TOUGH TALK: Teresa Harding, LNP candidate for Blair, and Ian Macfarlane, Shadow Minister for Energy and Resources, talk with car dealers Greg Boettcher and James Sturges about the impact of changes to the fringe benefit tax on cars.
TOUGH TALK: Teresa Harding, LNP candidate for Blair, and Ian Macfarlane, Shadow Minister for Energy and Resources, talk with car dealers Greg Boettcher and James Sturges about the impact of changes to the fringe benefit tax on cars. Claudia Baxter

IPSWICH car dealers say the Federal Government's planned changes to the fringe benefits tax (FBT) governing car leasing and salary-sacrifice packages has already cost them sales.

Prime Minister Kevin Rudd announced last week his government was tightening the tax rules.

The move is designed to save the government $1.8 billion and help pay for Mr Rudd's decision to move from the carbon tax to an emissions trading scheme.

Currently, the FBT allows people to claim concession under the statutory method (20% of the cost of their car) or the operational method (based on personal car use).

The new rules may only use the operational method which would force all employees to keep logbooks.

Shadow Minister for Energy and Resources Ian Macfarlane and LNP candidate for Blair Teresa Harding yesterday visited Llewellyn Motors in Booval where dealer principal Wade Llewellyn said Mr Rudd's announcement had an immediate impact.

"The day it was announced we had 12 cancelled orders," Mr Llewellyn said.

"We sell 15 cars a day so that's a full day's trading out the window with the announcement.

"We've got a fleet company that buys 500 cars a year, they've suspended their orders and we're not sure if they're going to be buying cars from us."

But he said the worst aspect was it affected people on lower incomes.

Mr Macfarlane said the tax changes would cost thousands of families an average of $1400 per year.

"It has been estimated that 75% of drivers with salary packaged vehicles earn less than $100,000 - so this is another hit on families," he said

Ms Harding said the policies of the Rudd and Gillard governments had "put enormous pressure on families in the region".

"There's been the carbon tax, changes to the private health insurance rebate, increased superannuation taxes, increased child care costs, the loss of promised family payments and now changes to the FBT on cars. If you are a sales rep with a company car, a nurse or a teacher with a salary packages vehicle, this is bad news for you and your family," she said.

Mr Macfarlane said that, if elected, a Coalition government would not proceed with these changes.

"Businesses are going to have to lay off staff because of an ill-conceived, no consultation decision by Kevin Rudd," he said.

Llewellyn Motors general manager James Sturges said the new FBT rules were a problem not only for car dealers but anyone who provided a car to their staff.

Boettcher Motors general manager Greg Boettcher said it was the last thing the car business needed.

"Times are tough as it is let alone out of the blue this happens," Mr Boettcher said. "It just puts more loss of confidence into an already-struggling industry."

But Federal MP Shayne Neumann said claims the FBT changes would cause damage to industry were "alarmist and irresponsible".

"In short, all we're asking is that if you're claiming a legitimate tax concession because you are using your car for business purposes, you provide a small amount of evidence to that effect," Mr Neumann said. "The biggest threat to the car industry in Australia is the Coalition themselves, who have confirmed they would cut at least $500 million from auto industry assistance."



How to survive a bushfire in your car

IT SOUNDS like a nightmare, but it can happen.

Eight reasons to join the RFS

SPREAD across 93% of Queensland, the Rural Fire Service has about 36,000 volunteers. And you could be one of them.

What if my insurer gives me grief?

CLAIMING your insurance cover after a natural disaster can go one of two ways. It can be a breeze, or like pulling teeth.

Man's offending a 'mixed bag of lollies': Magistrate

ECLECTIC OFFENDER: Mathew James Lambourne.

Man broke the law 36 times in less than a year

AUDIO: How an hour of your time can change a life

Tristan Hunt

Youth mentor volunteers wanted to support young people

Why Jade By Design is closing down

Jade by Design owner Jade Stuart is closing the store to become a nurse.

Ipswich CBD boutique shutting up shop while business booms

Local Partners

Nominations now open for next Member for Lockyer

Following Ian Rickuss' announcement that he will not be contesting the next state election, the LNP is today opening nominations for the seat of Lockyer.


Proud local to headline Carols by Candlelight

Troy Cassar-Daley is back home in the Clarence Valley to perform and promote his book and album 'Things I Carry Around' this weekend.

Troy Cassar-Daley to headline Mayor's Carols By Candlelight

CHRISTMAS SHUT DOWNS: Art Gallery's holiday hiatus

Explore the tunnels and slides made entirely from 56,000 metres of packing tape designed and created by artist Eric Lennartson direct from the US!

Council advises of Christmas-New Year shut downs for CBD attractions

Top 5 Christmas events around Ipswich

The Twighlight Christmas Parade was just the first of many events around the region.

THERE are plenty of exciting Christmas activities coming up.

Amy Schumer thanks Barbie trolls for hateful comments

Amy Schumer is in the lead role for the new Barbie movie

Proud local to headline Carols by Candlelight

Troy Cassar-Daley is back home in the Clarence Valley to perform and promote his book and album 'Things I Carry Around' this weekend.

Troy Cassar-Daley to headline Mayor's Carols By Candlelight

Shannen Doherty's husband is suing for destroyed sex life

Shannen Doherty's husband is suing her former manager

Azealia Banks' battery case against Russell Crowe dropped

Russell Crowe will not be charged with battery

Mel Gibson named Best Director at AACTA Awards

Mel Gibson poses in the media room after winning the AACTA Award for Best Direction for Hacksaw Ridge.

HIS wartime drama Hacksaw Ridge sweeps 6th annual awards in Sydney.

Mark Hamill unaware his co-stars were romantically involved

Hamill too "self-involved" at the time to notice, he said

Ipswich City Properties asset portfolio retains its value

Ipswich City Council Administration Building, South Street, Ipswich. Photo: Claudia Baxter / The Queensland Times

New website launched by Ipswich City Council

INSIDE STORY: The highlights of your $150 million CBD

GRAND PLAN: The highlights of the Ipswich CBD redevelopment and where they will be located.

Work on city heart's radical transformation to begin next year

REVEALED: Timeline for CBD redevelopment

The new redevelopment of the CBD will take place in stages.

Lindsay gives the good oil on when the work will begin

VOTE IN OUR POLL: Sand mine opponents face serious dilemma

Public meeting for the proposed sand mine at Maroochydore last week.

Coast MP calls on Minister to stop KRA proposal with stroke of a pen

PHOTOS: World class CBD to lift Ipswich

An artist's impressions of the future Ipswich city mall.

Grand plans to transform city heart unveiled today

Ready to SELL your property?

Post Your Ad Here!