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Australian FBT Changes Could 'Significantly' Impact Business Fleets

August 07, 2013

According to a survey conducted with small- and medium-sized businesses, only 30 percent intend to maintain their current fleet size in the wake of the recent fringe benefit tax (FBT) change.

The survey, conducted by Australian fleet managment company Fleetcare, interviewed 200 company owners and fleet managers nationally and found that 46 percent will keep their vehicles longer, 36 percent intend to cut their fleet size, and 24 percent are moving to cash allowances for drivers instead of providing vehicles.

Overall, 56 percent of respondents said the FBT change would have a "major" or "significant" impact on their businesses. Only 13 percent of those surveyed said the changes would have no financial impact at all.

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