International Family Business Blog

Fallout from Rudd's FBT tax slug on cars continues

Labor's $1.8bn "savings" is actually a tax increase that has in the 10 days since it was announced caused a serious immediate loss of jobs, with prospectively more to come. Fleet sales of motor vehicles have stalled and the compliance burden on employers and employees alike is set to be horrid.

The negative impact upon Federal and State government collections of import duties, luxury car tax, stamp duties, registration etc have been estimated at $2.2bn. If correct, this is not very good maths (quite apart from the job losses and damage to the local motor assembly and manufacturing industries).

Today, more than $0.5bn was wiped off the market value of listed finance and salary packaging company McMillan Shakespeare.

Good one Kev! 

The Emperor's new clothes?

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