The proposed changes in relation to car FBT take effect to all new contracts entered into after the 16.07.13 - so you would fit that descriptionThe changes basically mean that the more concessional FBT method (the statutory method) has been binned and more FBT revenue will be capturedHowever, the start date of the new rules is quiet conflicting as the statutory formula can still be used for the remainder of the 2014 FBT year (1 Apr 13 – 31 Mar 14). Subsequent to that date only the operating cost can be used.
This means the employer must use the operating cost method when calculating the FBT payable on the car they provide to you and involves keeping track of all costs of operating the car for the FBT yearThere is much uncertainty regarding this pronouncement considering the amount of lobbying from large car manufacturers and the private sectorThere is even more uncertainty as the coalition have indicated they will oppose this measure and remove it if elected into GovernmentIn your case Andrew, I strongly recommend you enquire from your employer what policy they are going to adopt regarding the proposed changes. If they are unclear, advise them that you can still use the statutory method until the next FBT year.Please remember that, in order to make this arrangement effective that precise details of the arrangement between you and your employer needs to be governed by a written salary packaging policy and should include the following:The total cost of employment (TCE) which includes cash salary, superannuation contributions, the cost of the benefits provided and FBT payable by the employer) should not exceed a certain remuneration amount
GST credits are added back to the employers package (because they can claim it back if they are GST registered and I highly doubt they are not GST registered)
GST is payable on any contributions you make to the package i.e. if you pay for fuel.
I do hope all of the above makes sense to you, if not just let me know.