Australian Fleet Sales Spike After Federal Election
In the wake of September's Australian federal elections, which saw the Coalition led by Tony Abbot defeated Kevin Rudd and the Australian Labor Party, fleet sales spiked 64 percent, according to the Australian Fleet Lessors Association (AFLA).
Fleet sales took a hit after the Rudd Government announced changes to the Fringe Benefits Tax (FBT) on the personal use of company cars, according to a report by the Herald Sun. The Coalition had promised that it would not go ahead with the changes to the FBT if it won the election. The changes have not been yet formally abandoned.
Australian-made vehicles saw a 24 percent increase in orders. Import brands reported a 21 percent increase, according to the press report.
While the initial report is rosy, some dealers are also reporting tough sales conditions, but this is expected to turnaround, according to the Herald Sun report.