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Shorten says FBT is here to stay


On May 4th a letter from Labor leader Bill Shorten to NALSPA (National Automotive Leasing & Salary Packaging Association) confirmed that should his party win at the next election, current Fringe Benefit Tax and salary packaging structures would remain.

Shorten paid particular attention to the retaining of the Statutory Formula Method (SFM) for assessing compliance for FBT eligibility would also stay as it is now, providing an easy and low-cost solution for determining compliance.

“A Shorten Labor government will not implement any changes to the Statutory Formula Method relating to employer provided motor vehicles,” he wrote.

He also said “Labor will retain the current arrangements in relation to all measures regarding salary packaging and related Fringe Benefit Tax” in the letter to Chairperson Robbie Blau.

Blau said the uniform attitude across Labor and the Coalition is welcome relief.

“We are pleased that Labor has adopted NALSPA’s policy position regarding FBT treatment of workers’ vehicles and salary arrangements more generally,” he said, “Which now aligns both major political parties.”

The SFM currently works by determining if a vehicles primary purpose is for the carriage of passengers. For detailed information regarding FBT rules and eligibility visit


Image: Ford Motor Company