Labor Electric Car FBT discount

[Speedst3r]

It should not matter if the NL company will quote or not - the lease cost shouldn't change, just the structure of the payment (currently pre-tax + ECM, only pre-tax when the bill passes). Your employer's payroll should be able to change that as required, the finance company only care that they are receiving the agreed monthly rental.

The calculation should be, remove the GST from the ECM and then add the ex-GST ECM to whatever the pre-tax value is. That's the salary packaging deduction, and from that you can work out what you're paying tax on.

pay calculator is a useful online tool to estimate the change in take-home pay.

 

[Jusebert]

With the quirk being that some NL companies might only quote once the bill has actually received royal ascend, which earliest would be October 1st

Probably October.. but it could be passed in the senate next week

 

[hyperdallas]

With the quirk being that some NL companies might only quote once the bill has actually received royal ascend, which earliest would be October 1st

I had the same but got around that, it's an easy fix. Tell the NL company to exclude FBT via ECM and that you will pay your FBT at FBT years end in one lump sum.

They knew what I was doing and why, but couldn't do anything about it.

 

[Speedst3r]

Tell the NL company to exclude FBT via ECM and that you will pay your FBT at FBT years end in one lump sum.

Unfortunately my (rather large) employer does not allow operating cost leases, even in this circumstance. Presumably because of their size they would be required to remit any FBT quarterly.

With the death of the Queen, parliament is suspended for 15 days - the Senate will not debate this legislation until next month, earliest the bill can take effect is 1 January.

 

[Jusebert]

Unfortunately my (rather large) employer does not allow operating cost leases, even in this circumstance. Presumably because of their size they would be required to remit any FBT quarterly.

With the death of the Queen, parliament is suspended for 15 days - the Senate will not debate this legislation until next month, earliest the bill can take effect is 1 January.

Can't it pass in November?

 

[hobz_]

They're sitting again at the end of October no?

 

[skyworxx]

Royal Ascend only happens 4 times a year. If we miss October 1st (likely), then it'll be January 1st

 

[Speedst3r]

Can't it pass in November?

The bill can pass, but it is not effectively law until granted Royal Assent by the Crown's representative (the Governor-General). As per skyworxx:

Royal Ascend only happens 4 times a year. If we miss October 1st (likely), then it'll be January 1st

 

[Jusebert]

Today I learned!

I'll be confident to pull the trigger if the bill passes the senate and is simply waiting for Royal Assent though.

 

[_ajs_]

Today I learned!

I'll be confident to pull the trigger if the bill passes the senate and is simply waiting for Royal Assent though.

Yes agree.

Could be some ugly accounting required to refund FBT to 1 July? Anyone have an idea of how this would work? (in layman’s term if possible )

 

[Vostok]

Royal Ascend only happens 4 times a year. If we miss October 1st (likely), then it'll be January 1st

It’s called “Royal Assent” and it can happen at any time. There is no quarterly calendar. The Government can take a Bill that has been passed by both houses to the GG for Royal Assent at a time of its choosing. There have been examples of allegedly “urgent” legislation being rammed through parliament in 1 day and Assented to that same day. But usually, the GG would sign a Bill into law (wherupon it becomes an Act) within a few days of the Government providing him/her the printed copies of the Bill with the required certifications:

Presentation of bills for assent

Presentation of bills for assent The Constitution provides that on the presentation of proposed laws for assent, the Governor-General declares, according to his discretion but subject to the Constitution, that he assents in the Queen’s name, or that he withholds assent, o

www.aph.gov.au

 

[cafz]

It’s called “Royal Assent” and it can happen at any time. There is no quarterly calendar. The Government can take a Bill that has been passed by both houses to the GG for Royal Assent at a time of its choosing. There have been examples of allegedly “urgent” legislation being rammed through parliament in 1 day and Assented to that same day. But usually, the GG would sign a Bill into law (wherupon it becomes an Act) within a few days of the Government providing him/her the printed copies of the Bill with the required certifications:

Correct.

However a bill can set its own entry-into-force provisions. In the case of this bill:

The amendments provided by the Bill commence from the first 1 January, 1 April, 1 July or 1 October to occur after the day the Bill receives Royal Assent.

So if it's not received Royal Assent by 30 September, it can't start until 1 January.

(The actual benefits in the bill are backdated to 1 July 2022).

 

[Vostok]

However a bill can set its own entry-into-force provisions. In the case of this bill:

So if it's not received Royal Assent by 30 September, it can't start until 1 January.

(The actual benefits in the bill are backdated to 1 July 2022).

Thanks for that clarification. In this case, the fact that it receives Assent to should provide sufficient certainty for everyone to move forward, e.g. if it received Assent on 1 October, even though its provisions don‘t come into force until a later date. And it’s all backdated anyway.

 

[EbenHero]

Parliament is sitting again from 26-28 September. It is reasonable to expect the legislation will be passed in that time. What likelihood is there that the legislation will receive assent by 30 September? Timelines are tight!

 

[gm12]

I just extended my novated lease for another year (was 1 year lease). At this point is a couple hundred dollars "more" expensive than just buying the balloon and putting it against the home loan, but I'm doing it for the convenience.
I don't that the FBT benefit will apply to me because the car has to be purchased after July 22.

 

[Jusebert]

Parliament is sitting again from 26-28 September. It is reasonable to expect the legislation will be passed in that time. What likelihood is there that the legislation will receive assent by 30 September? Timelines are tight!

And the 23rd - that extra day counts!

 

[doggy1]

And the 23rd - that extra day counts!

I doubt it. That is a "Condolence Day" for Parliament. Not sure anything else happens- unfortunately.

 

[Maximillan]

Getting to the pointy end and things are getting interesting

Greens, Pocock push to exclude plug-in hybrids from Labor’s EV tax breaks

 

[hyperdallas]

Yeah I saw that too… very interesting how that’s gonna fall. Would have thought labour would have tee’d up the greens to get their support prior to introducing it.

 

[Vostok]

I can see arguments both ways on this one, so it will be fascinating to see which side it lands.

Pros:

• PHEVs have significantly lower overall emissions than ICE, so don’t let perfect be the enemy of good
• At the moment the auto industry cannot make enough BEVs, and PHEVs are a way of ’rationing’ battery supply in a way that still achieves meaningful emissions reductions.

Cons:

• PHEVs still use fossil fuels, and the objective is to completely phase out fossil fuels, not just reduce their use.
• A disturbing number of people buy PHEVs for tax break reasons, but never or rarely charge them, and simply run on petrol most or all the time. That is the antithesis of what is trying to be achieved here.
• PHEVs don’t need tax breaks, their price premium is not as big as it is with BEVs

I reckon we might see a compromise, like PHEVs get the exemptions but only for another 2 or 3 years or something.