how taxes encourage driving ...



B

Bleve

Guest
Is anyone else here amazed by the way novated leases work? My
understanding is that they're basically a tax dodge for high income
earners, that requires that the upperclass welfare recipient drive the
car for at least 26,000km a year to keep the tax break.

The people I know with novated leases drive *everywhere* simply because
they have to get the k's. Insane ...
 
D

dave

Guest
Bleve wrote:
> Is anyone else here amazed by the way novated leases work? My
> understanding is that they're basically a tax dodge for high income
> earners, that requires that the upperclass welfare recipient drive the
> car for at least 26,000km a year to keep the tax break.
>
> The people I know with novated leases drive *everywhere* simply because
> they have to get the k's. Insane ...
>


Girl upstairs is driving her dads car everywhere for exactly the same reason
 

flyingdutch

New Member
Feb 8, 2004
5,700
0
0
can people supply examples of OS tax incentives or the like?

be a good case study via BV/lobbying gov

I know people in some states of US who get paid an 'allowance' every week if they ride 3+ days per week (think it was $10us/week?)
Cateye employees get it

any others?

someone mentioned the obviousness* of bike-stuff being a equivalent to a CoCar or lappy

* inventing werds is my 'middle_name'
 
T

Tamyka Bell

Guest
Bleve wrote:
>
> Is anyone else here amazed by the way novated leases work? My
> understanding is that they're basically a tax dodge for high income
> earners, that requires that the upperclass welfare recipient drive the
> car for at least 26,000km a year to keep the tax break.
>
> The people I know with novated leases drive *everywhere* simply because
> they have to get the k's. Insane ...


That's what my ex had, I think. He was so proud. I told him I thought it
was stupid, and he was stupid, and I wasn't impressed by a stupid car,
why didn't he get a bike instead? (I may have also told him I already
knew he had a small penis so he didn't need to prove it like that - yes
he was already my ex at the time.)

Tam
 
D

dave

Guest
Tamyka Bell wrote:
> Bleve wrote:
>
>>Is anyone else here amazed by the way novated leases work? My
>>understanding is that they're basically a tax dodge for high income
>>earners, that requires that the upperclass welfare recipient drive the
>>car for at least 26,000km a year to keep the tax break.
>>
>>The people I know with novated leases drive *everywhere* simply because
>>they have to get the k's. Insane ...

>
>
> That's what my ex had, I think. He was so proud. I told him I thought it
> was stupid, and he was stupid, and I wasn't impressed by a stupid car,
> why didn't he get a bike instead? (I may have also told him I already
> knew he had a small penis so he didn't need to prove it like that - yes
> he was already my ex at the time.)
>
> Tam


Wow. Dont hold back. Mental note not to get on Tams wrong side. Not
that you are necessarily wrong of course

Dave
 
T

Theo Bekkers

Guest
Tamyka Bell wrote:

> That's what my ex had, I think. He was so proud. I told him I thought
> it was stupid, and he was stupid, and I wasn't impressed by a stupid
> car, why didn't he get a bike instead? (I may have also told him I
> already knew he had a small penis so he didn't need to prove it like
> that - yes he was already my ex at the time.)


Ouch!

Theo
 
R

Resound

Guest
"Tamyka Bell" <[email protected]> wrote in message
news:[email protected]
> Bleve wrote:
>>
>> Is anyone else here amazed by the way novated leases work? My
>> understanding is that they're basically a tax dodge for high income
>> earners, that requires that the upperclass welfare recipient drive the
>> car for at least 26,000km a year to keep the tax break.
>>
>> The people I know with novated leases drive *everywhere* simply because
>> they have to get the k's. Insane ...

>
> That's what my ex had, I think. He was so proud. I told him I thought it
> was stupid, and he was stupid, and I wasn't impressed by a stupid car,
> why didn't he get a bike instead? (I may have also told him I already
> knew he had a small penis so he didn't need to prove it like that - yes
> he was already my ex at the time.)
>
> Tam


Commodore?
 

SteveA

New Member
Jul 15, 2004
1,309
0
0
64
Bleve said:
Is anyone else here amazed by the way novated leases work? My
understanding is that they're basically a tax dodge for high income
earners, that requires that the upperclass welfare recipient drive the
car for at least 26,000km a year to keep the tax break.

The people I know with novated leases drive *everywhere* simply because
they have to get the k's. Insane ...
It's due to the way that Fringe Benefits Tax on cars works. There are 2 alternative ways to work out FBT. One is based on actual costs. The other is a nominal approach based on mileage. With the second method, rate of FBT goes down as mileage does up.

Unfortunately, does not apply to bikes.

FBTing a car can make it cheaper than owning it and paying for everything privately, but driving a car is still an expensive proposition. And if the employer provides parking, FBT generally has to be paid on that too.

Bikes do not pay FBT on parking.

So if I ride and park in my space at work, no FBT. If I drive and park in my space at work, FBT. There is a god after all.

SteveA

SteveA
 
T

Tamyka Bell

Guest
Resound wrote:
>
> "Tamyka Bell" <[email protected]> wrote in message
> news:[email protected]
> > Bleve wrote:
> >>
> >> Is anyone else here amazed by the way novated leases work? My
> >> understanding is that they're basically a tax dodge for high income
> >> earners, that requires that the upperclass welfare recipient drive the
> >> car for at least 26,000km a year to keep the tax break.
> >>
> >> The people I know with novated leases drive *everywhere* simply because
> >> they have to get the k's. Insane ...

> >
> > That's what my ex had, I think. He was so proud. I told him I thought it
> > was stupid, and he was stupid, and I wasn't impressed by a stupid car,
> > why didn't he get a bike instead? (I may have also told him I already
> > knew he had a small penis so he didn't need to prove it like that - yes
> > he was already my ex at the time.)
> >
> > Tam

>
> Commodore?


No... but close. And hmmph to all you out there who thought I was mean!

Tam
 
G

GPLama

Guest
"Tamyka Bell" wrote in message ...
>>
>> Commodore?

>
> No... but close. And hmmph to all you out there who thought I was mean!
>


Phew!


cheers,
GPLamadore
 
B

Bleve

Guest
SteveA wrote:
> Bleve Wrote:
> > Is anyone else here amazed by the way novated leases work? My
> > understanding is that they're basically a tax dodge for high income
> > earners, that requires that the upperclass welfare recipient drive the
> > car for at least 26,000km a year to keep the tax break.
> >
> > The people I know with novated leases drive *everywhere* simply because
> > they have to get the k's. Insane ...

> It's due to the way that Fringe Benefits Tax on cars works. There are
> 2 alternative ways to work out FBT. One is based on actual costs. The
> other is a nominal approach based on mileage. With the second method,
> rate of FBT goes down as mileage does up.
>
> Unfortunately, does not apply to bikes.


I don't care about tax breaks for bikes, I don't need welfare to ride
my bike, I just think it's stupid to encourage more driving for the
sake of a tax break, which is one effect of the novated lease rort.
 

flyingdutch

New Member
Feb 8, 2004
5,700
0
0
Tamyka Bell said:
No... but close. And hmmph to all you out there who thought I was mean!

Tam

nah, that's just honest :D

'mean' would be "and you cant push a big ring!"
 
R

Resound

Guest
"flyingdutch" <[email protected]> wrote in
message news:[email protected]
>
> Tamyka Bell Wrote:
>>
>> No... but close. And hmmph to all you out there who thought I was
>> mean!
>>
>> Tam

>
> nah, that's just honest :D
>
> 'mean' would be "and you cant push a big ring!"
>

So many wrong responses spring to mind there...especilly after telling the
guy he has a small penis.
 
T

Tamyka Bell

Guest
flyingdutch wrote:
>
> Tamyka Bell Wrote:
> >
> > No... but close. And hmmph to all you out there who thought I was
> > mean!
> >
> > Tam

>
> nah, that's just honest :D
>
> 'mean' would be "and you cant push a big ring!"


Hehehe you mean because I don't need to push, I can just spin it?

Tam
 
B

Bleve

Guest
Tamyka Bell wrote:
> flyingdutch wrote:
> >
> > Tamyka Bell Wrote:
> > >
> > > No... but close. And hmmph to all you out there who thought I was
> > > mean!
> > >
> > > Tam

> >
> > nah, that's just honest :D
> >
> > 'mean' would be "and you cant push a big ring!"

>
> Hehehe you mean because I don't need to push, I can just spin it?


He means *up* the hill, Tam, not down it :)
 
T

Tamyka Bell

Guest
Bleve wrote:
>
> Tamyka Bell wrote:
> > flyingdutch wrote:
> > >
> > > Tamyka Bell Wrote:
> > > >
> > > > No... but close. And hmmph to all you out there who thought I was
> > > > mean!
> > > >
> > > > Tam
> > >
> > > nah, that's just honest :D
> > >
> > > 'mean' would be "and you cant push a big ring!"

> >
> > Hehehe you mean because I don't need to push, I can just spin it?

>
> He means *up* the hill, Tam, not down it :)


Oh, I thought he meant up a MOUNTAIN! :p *goes back to fantasy land
where she cycles competently*

Tam
 
A

A5Hi5M

Guest
"Theo Bekkers" <[email protected]> wrote in message
news:[email protected]
> Tamyka Bell wrote:
>
>> That's what my ex had, I think. He was so proud. I told him I thought
>> it was stupid, and he was stupid, and I wasn't impressed by a stupid
>> car, why didn't he get a bike instead? (I may have also told him I
>> already knew he had a small penis so he didn't need to prove it like
>> that - yes he was already my ex at the time.)

>
> Ouch!
>
> Theo
>


You're hurting because he had a small penis?! ;)

Ash
 
K

Katharine & Paul

Guest
It doesnt go just to rich people.

In QLD it is available to public servants, even those on the lowest level
wages. Someone earning under 30 grand a year can do it


"Bleve" <[email protected]> wrote in message
news:[email protected]
>
> Is anyone else here amazed by the way novated leases work? My
> understanding is that they're basically a tax dodge for high income
> earners, that requires that the upperclass welfare recipient drive the
> car for at least 26,000km a year to keep the tax break.
>
> The people I know with novated leases drive *everywhere* simply because
> they have to get the k's. Insane ...
>
 
S

Someone Else

Guest
"Bleve" <[email protected]> wrote in message
news:[email protected]
>
> Is anyone else here amazed by the way novated leases work? My
> understanding is that they're basically a tax dodge for high income
> earners, that requires that the upperclass welfare recipient drive the
> car for at least 26,000km a year to keep the tax break.
>
> The people I know with novated leases drive *everywhere* simply because
> they have to get the k's. Insane ...
>


Not amazed. It's more to do with Fringe Benefits Tax (FBT), which has been
around for about 20 years. There are threshholds at 15,000km and 25,000km
(ie, tax rate decreases), so there is an incentive to drive a few extra kms
if you're close (but short) of these hurdles.
 
E

Euan

Guest
>>>>> "fd" == flyingdutch <[email protected]> writes:

fd> can people supply examples of OS tax incentives or the like?

fd> be a good case study via BV/lobbying gov

fd> I know people in some states of US who get paid an 'allowance'
fd> every week if they ride 3+ days per week (think it was
fd> $10us/week?) Cateye employees get it

Here's one scheme that's just too sweet for words:

http://money.guardian.co.uk/tax/story/0,1456,1307166,00.html

fd> someone mentioned the obviousness* of bike-stuff being a
fd> equivalent to a CoCar or lappy

That'd be me.
--
Cheers | ~~ [email protected]
Euan | ~~ _-\<,
Melbourne, Australia | ~ (*)/ (*)