|Written by Shannon Staunton|
2011 Budget and FBT?
Novated leasing might just have got better!
2011 Federal Budget
In the 2011 Federal Budget the Treasurer The Hon. Wayne Swan MP announced an important change to the Statutory Formula calculations for FBT on motor vehicles.
"The Government will reform the current 'Statutory Formula' method for determining the taxable value of car fringe benefits by replacing the current statutory rates with a single rate of 20 per cent that applies regardless of the distance travelled."
There are no changes to novated leases entered into prior to 7.30pm (AEST) 10 May 2011.
These changes cement the family car as one of the most effective tax savings available to employees and will drive novated leasing as the cheapest and most effective car ownership option for most Australian families.Key benefits:
• Retains current benefit for all existing novated leases
• Allows all Australian employees to access tax benefits regardless of how far they travel each year
• Simplifies the calculation and administration of FBT for employers. This will allow a broader pool of employees to be able to benefit from vehicle salary packaging
• Makes the packaging of additional family cars traveling low kilometres attractive (e.g. spouse or university student)
• Provides freedom to explore alternate ways to travel to work including carpooling and the use of public transport. All great for our environment!
A novated lease continues to offer peace of mind in a harsh economic climate for Australian families. The simplicity and convenience of a budgeted salary package covering all vehicle expenses provides surety and helps family cash flow.
Whether you are an Employer or Employee, if you would like to take advantage of the new flat rate of FBT then talk to Zenra, If you would like to speak to a specialist or require more information, please contact Zenra 1300 71 38 12.