Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


FBT Review - Motor vehicles top list of concerns

24 February, 2002 Media Statement

Fringe Benefit Tax Review –
Motor vehicles top list of concerns

The tax treatment of motor vehicles was the number one concern of people who expressed their views on what should be covered by the government’s review of fringe benefit tax, Associate Minister of Revenue Paul Swain said today.

“In October we invited comments from the public on which issues should be included in the review and how compliance costs associated with fringe benefit tax could be reduced,” said Mr Swain. “The object was to ensure the review covers issues that are of real concern to employers and businesses.”

“We are very pleased with the excellent response. We received 68 submissions from a wide cross-section of the community including tax practitioners, business groups, government entities and members of the public. Some of the submissions were based on client surveys, so the number of views represented is even higher.

“The vast majority of submissions considered the fringe benefit tax system to be complex and costly, and they included ideas on ways to reduce the cost of complying with the tax and simplify both the process and the rules.”

“Although most commented on the tax treatment of motor vehicles, they dealt with more than one issue.

“For those commenting on motor vehicles, valuation for fringe benefit tax purposes was the key area of concern, with many people considering it unfair for the valuation formula to be based on the original price of a vehicle. Other main concerns were home-to-work use of vehicles and work-related vehicles.”

“Other issues of common concern were the tax treatment of car parks, low-interest loans, low-value business assets such as laptops and cell phones, social benefits such as subsidised health insurance, and the fringe benefit tax exemption for employees of charities.

“The government agrees there is scope for simplifying fringe benefit tax and reducing the associated compliance costs, and we will be talking to interested groups and developing proposals aimed at doing that. The next step will be the publication in August of a government discussion document setting out proposals for change. This will be another opportunity for interested parties to ensure their views are considered, and I hope they will take the opportunity.

“In the meantime, I want to thank all those who sent us their views on the review, many of whom went to considerable effort. All the issues they raised will be considered in developing policy proposals,” said Mr Swain.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>


Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election