Fringe benefits tax for cars: Some further considerations for policy change and reform

In July 2008 the Australian Tax Forum journal published an article about research outcomes based on the contention that the Fringe Benefits Tax a??statutory formula methoda?? for cars promotes the usage of cars, the effects of which are higher usage of petrol and increased emissions of greenhouse gases; both these negative aspects are unintended consequences of the 20 year old FBT legislation. Our central question and post research results were presented to a variety of tax forums over three years. This article presents some additional issues raised by various delegates at three of those forums as part of the next step in addressing the shortfalls of Fringe Benefits Tax in relation to cars, the necessary recasting of policy and reform to the legislation.