By REBECCA BILLS
LOWER paid Geelong workers were feeling the “continued negative impact” of changes to the fringe benefits tax, according to the Australian Salary Packaging Industry Association.
The association brought its roadshow to Geelong this week to protest the Federal Government changes.
Association president Leigh Penberthy said the changes were detrimental to local employers and employees in lower paid sectors.
Mr Penberthy said the changes would add pressure on household budgets, especially residents working in government, healthcare and social assistance.
“The FBT arrangements, which have been in place for the last 27 years, have assisted charities, aged care groups, government and emergency services workers to salary package vehicles to supplement traditionally lower pay rates,” he said.
He said the 2011 census found 19 per cent of residents – over 12,700 – in the electorate were employed in those sectors.
Mr Penberthy said there were issues around retention and retraction of staff in the non-for-profit and public health sector because pay scales were slightly lower than the private sector.
“If funding stops there is a big chance key employees will move over into the private sector – it means these sectors lose again.”
He said the changes, introduced in July, were also impacting the future of Australia’s car manufacturing and salary packaging industries.
“In that days following the announcement over 10,000 car sales were cancelled or postponed, which led to the retrenchment of hundreds of people in the salary packaging industry,” he said.
“Unfortunately, thousands more jobs are at risk if the changes are not reversed.
“This will have a knock-on effect all the way down to the local corner shop that supplies the sandwiches for these employers.”
According to ASPIA salary packaging data, over 70 per cent of drivers earn less than $100,000 and the average value of a packaged car is $34,500.
“These are not the Audi, BMW and Mercedes drivers, they are everyday Australians supporting community service work.”
Ford blamed recent down days on the impact of the FBT changes.
