That’s the finding of research carried out by the Australasian Fleet Management Association (AfMA).

The association conducted a series of forums in the major state capital in August, discussing the proposed FBT changes and surveying the likely impact on attendees’ current vehicle fleets.

The AfMA survey, which focused exclusively on passenger and light commercial fleets and excluded salary packaged novated leases, found the changes will encourage the use of the “grey fleet” for business purposes, substantially increasing an organisation’s Occupational Health and Safety risk.

Based on the survey results it is also likely that the government will experience a revenue reduction rather than their alleged increase in FBT income:

• 90% advised that the proposed changes would adversely affect their organisation financially, operationally and/or administratively.
• 61% of the survey group currently uses the Statutory Method for part or all of their fleet FBT calculations.
• 41% of their vehicles would be adversely affected by the proposed changes.
• $3,300 was the expected FBT increase, per vehicle per annum.
• 49% of the survey group intends to reduce their vehicle numbers.
• 37% of respondents intend to look at employee car allowances.

The survey respondents were from a range of sectors, covering 39% government, 29% private companies, 20% NFP, 11% publicly listed companies and 1% not disclosed, and covered a sample size representing over 126,000 vehicles.

In response, AfMA is urging fleets to take three steps:

1.            Forward this article to colleagues and peers

2.            Evaluate the impact of the proposed FBT changes to their organisation

3.            Communicate concerns to their local Member of Parliament, the Federal Government and Opposition parties.