Car lease firms want answers from Rudd

Car lease firms want answers from Rudd

Embattled Perth car lease operators will seek an urgent meeting with Kevin Rudd when he tours the city today for the first time since becoming Prime Minister.

The sector, which has laid off dozens of staff since the Government announced changes to the fringe benefits tax exemption on work cars and salary-sacrificed vehicles, wants to challenge Mr Rudd over the proposals.

Fleetcare founder and chief executive Nigel Malcolm said local companies wanted to press Mr Rudd about the changes and what they have done to the sector.

"The Government did not consult the industry before making the announcement and from all that they've said since the announcement it seems to those of us in the industry that they don't understand the devastating impact the changes will have," he said.

"This is not just about drivers of salary-packaged cars having to pay an average extra $1400 a year. The cost to businesses who provide staff with a car, as part of their package, will be $4000 a year per vehicle.

"Quite apart from the impact on the whole car industry, that will make a huge impact on business profitability, confidence and the economy."

Fleetcare, Fleet Network and easifleet all want to talk to Mr Rudd.

Publicly listed salary sacrifice firm McMillan Shakespeare, which went into a trading halt soon after the changes were announced, restarted trading on the Australian Securities Exchange yesterday.

It has lost 55 per cent in value since the changes.

Mr Rudd arrived in Perth overnight and has private meetings this morning before a roads event in the marginal Liberal-held seat of Hasluck, which Maritime Union official Adrian Evans is contesting for Labor.

Mr Rudd will meet Premier Colin Barnett to discuss the Federal schools funding plan.

He will launch Alannah MacTiernan's bid for the seat of Perth at Mt Lawley Bowling Club, then host a $2500-a-head fundraiser dinner at an undisclosed venue tonight.