Parliament

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

 

FBT on company-owned cars to be lowered


FBT on company-owned cars to be lowered


The government will reduce Fringe Benefit Tax on the private use of company-owned cars by reducing the rate used to value the vehicles from 24 per cent to 20 per cent of cost, Revenue Minister Michael Cullen said today.

“We will also raise the threshold at which FBT is paid on minor benefits, from $75 to $200 per quarter per employee and from $450 to $2000 per quarter for the employer,” Dr Cullen said, “and exempt employer-owned work tools, for example laptops and cell phones.”

These proposals are in a government discussion document released today and are part of a suite of moves to make the application of FBT more consistent, fairer and cheaper to comply with. The package will affect different businesses differently, resulting in savings for many but increased costs for some and will cost the government an estimated $10 million a year in forgone revenue.

Because around two-thirds of the FBT take comes from motor vehicles, many of the recommendations relate to the tax treatment of cars. Other vehicle-related amendments under consideration are:

allowing employers to elect the start time for their day for the purposes of calculating FBT to prevent private use of the vehicle within a 24-hour period being treated as two days’ use; allowing employers the option of calculating the FBT on the vehicle on the vehicle’s lower depreciated value rather than its cost, the equivalent rate being 36 per cent; bringing leased vehicles into alignment with company-owned vehicles to remove the incentive to lease; removing the inequities in the current treatment of car parks, where some are taxed and others are not. FBT would be applied more consistently to car parks but would largely be limited to central business areas, and hospitals, schools and charities would be exempted. Options as to the simplest way to achieve this are outlined in the discussion document.

The closing date for submissions is 27 February 2004. The discussion document, – Streamlining the taxation of fringe benefits – is on http://www.taxpolicy.ird.govt.nz and http://www.treasury.govt.nz.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On National’s Less Than Stellar Choices


Amid all the jostling in the National caucus ranks, spare a thought for Andrew Bayly. Who? Well might you ask. Plucked from obscurity by Judith Collin, elevated from number 18 to number 3 in the caucus rankings and given the Finance portfolio - a role in which he has been invisible ever since – Bayly seems destined for a future as a trivia quiz question. That’s because as the National leadership contest comes down to a choice between Simon Bridges and Christopher Luxon, the only decisions to be made on Tuesday are over who gets to be leader, and who gets the Finance job... More>>




 
 


Government: Workplace Vaccination Requirements Extended To Cover Police And NZ Defence Force

Workplace Relations and Safety Minister Michael Wood announced today that workplace vaccination requirements will be extended to include the New Zealand Police and Defence Force in preparation for the transition to the new COVID-19 Protection Framework on 3 December 2021... More>>


RNZ: Judith Collins removed as National Party leader
Dr Shane Reti is interim leader of the National Party after Judith Collins lost a no-confidence vote. Simon Bridges was demoted and stripped of all portfolios over allegations of an inappropriate comment made five years ago at a party function. Judith Collins was voted out as National's leader today after the party was locked in a caucus for more than three hours... More>>


Government: Supporting New Zealanders To Recover From COVID-19 In The Community
The Government is increasing the support for New Zealanders who test positive for COVID-19 through the rollout of the COVID Care in the Community model and a $300 million funding boost to Pharmac to purchase new medicines to treat the virus, Health Minister Andrew Little announced today... More>>

ALSO:


National: Launches First Step To World-class Tech Sector

Leader of the Opposition Judith Collins says technology will create exciting careers and higher paying jobs and has the potential to transform the New Zealand economy... More>>

Council For Civil Liberties: Disgraceful Government Secrecy On Vaccination Certificates As Legislation Rushed Through
On the eve of legislation to enable vaccination passes being rushed through Parliament under urgency, the Minister has said it will not publish the relevant policy papers until ‘late January 2022... More>>


Government: Providing Business The Tools To Vaccinate Workforces

The Government is building on measures to protect businesses and workers from COVID-19 as the country gets ready to transition to the new COVID-19 Protection Framework on December 3, Workplace Relations and Safety Minister Michael Wood announced today... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels