Changes to FBT rules

[Road_Warrior]

The Government scrapping the carbon tax will leave a $3.8 Billion revenue black hole for the next budget process. So it looks like they are changing a modifying a few other things to compensate. One of those which will be of interest to people on a car forum is FBT rules for car usage (salary sacrificing and company vehicle packages).

http://www.abc.net.au/news/2013-07-1...n-rudd/4822556

• Tax applies to employer-provided car used for work and personal use, or a privately-owned, salary sacrificed car.
• Benefit currently calculated using operating cost method (log book) or statutory formula method.
• Operating cost method: cost of running car multiplied by proportion of personal use of car (recorded in log book).
• Statutory formula method: cost of car multiplied by 20 per cent, regardless of actual personal use of car.
• Statutory formula automatically assumes significant proportion of use of the car is for business purposes.
• Removal of statutory formula method will apply to contracts entered into after July 16, 2013. It will be effective from April 1, 2014.
• Government says car log book apps now make operating cost method easier to calculate.

My question is: will this put the brakes on Australia's runaway love affair with dual cab utes/SUV's?

My reading of this is that people who have a company car that is mainly used for private use will get slugged.

PS I have alerted the mods to this thread so keep your political views and what you think of the carbon tax to yourself.