FBT Crackdown Punishing Car Industry: Clive Palmer

Media Release

The federal leader of the Palmer United Party, Clive Palmer, says the Rudd government crackdown on Fringe Benefits Tax (FBT) for cars will only punish an already struggling Australian motor vehicle industry.

Mr Palmer said the attack on FBT arrangements for car leasing and salary-sacrifice packaging will only worsen a serious situation for the automotive sector.

“This is just another example of the Labor Party mentality of punishing business and shrinking the economic pie,” he said.

“Kevin Rudd has put the Australian car industry under further threat by trying to raise $1.8 billion from this FBT change to plug another hole in the budget.

“It was done without any consultation with the auto industry and shows his lack of leadership.”

Mr Palmer said the nation’s car industry was already reeling from the decision by Ford Australia to close its plants in Victoria in 2016, putting 1200 people out of work.

“The Australian car manufacturing industry could be saved by the government encouraging the big three companies – Ford, Holden and Toyota – to join forces,” he said.

“Rudd and Tony Abbott should be working with these car makers to find a potential solution to keep the industry going and protect Australian jobs.”