FAQ: What changes were made to the Fringe Benefits Tax (FBT) & Novated Leases in July 2013?
What changes were made to the Fringe Benefits Tax (FBT) & Novated Leases in July 2013?
IMPORTANT INFORMATION - With the change of Government on 7 September 2013, the below information is now incorrect. For up-to-date information regarding Novated Leasing, please click here. You can also submit a quick online enquiry and one of our expert finance consultants will be in touch to discuss the smartest options with you.
On July 16th 2013, the Federal Government made changes to Fringe Benefits Tax (FBT) concessions for salary-sacrificed and employer-provided vehicles. This change removes the statutory method used to determine FBT liability. The cut is estimated to be worth $1.8 billion and will directly affect the viability of a novated lease as a tax-effective method of financing a car for many employees.
Note: At the time of writing, the changes still require legislative amendments and are likely to be the subject of a level of consultation (including submissions) and debate in Parliament.