The Federal Budget of May 2011 included changes to the Fringe Benefits Tax regime, which are now being introduced in stages over the next four years. Michael Jones of Cummings Flavel McCormack says the main change is to replace the sliding scale, based on distance travelled on business, on which the tax was calculated. Henceforth, for all new arrangements, a flat rate of 20 percent will apply. That may benefit people with a relatively low business usage, but those with greater business usage will pay more tax. Employers may wish to review the way in which they salary-package cars for employees.
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