Rudd blamed for car sales slump Yes, any change always has its victims. I just wonder whether Rush-Rush Rudd knew quite how many people his latest announcement would put out of work: ALMOST half of vehicles sold by Ford, Holden and Toyota are used for fleet purposes, the country's major carmakers say, but since Labor's reform of the fringe benefits tax system governing car leasing and salary-sacrifice packaging was announced on Tuesday, car dealers have reported fleet sales and salary-packaging orders "have ground to a halt..." The opposition and motor industry groups have disputed the government's claim that the system is being rorted by high-income earners buying luxury cars and claiming personal mileage as a work-related expense. The Australian Salary Packaging Industry Association said just 5 per cent of salary-packaged cars were luxury models and most users of the FBT scheme were government, charity, health, police and education workers... The head of Australia's largest independent fleet management company warned ... " we're talking about the average salary being under $100,000 and the average price of these vehicles is $35,000....." Lease Plan ..., which manages a fleet of 85,000 lease cars nationally, said 68 per cent of cars leased via salary-sacrificing were from the three Australian-based car companies... Meanwhile: NLC chief executive Matt Reinehr said the salary packaging company had no choice but to axe 74 of its 147 employees because of the federal government's proposed changes, which he said would cost the company's clients at least $1200 extra a year. Victorian Premier Denis Napthine last night warned the proposed FBT changes could cut Victorian car production by 10,000 units a year. Same across the border: South Australian Premier Jay Weatherill [warned] ... I am not concerned about the broad federal tax issues but on the impact of the very sensitive negotiations currently under way and progressing well with Holden about a co-investment package... Signs of panic from Labor, which is already hinting it could spend more to fix what it broke in trying to find "savings": The Rudd government could change its car plan to compensate Australian manufacturers if its reform of the fringe benefits tax leads to ""unintended consequences"," says Industry Minister Kim Carr. Treasurer Chris Bowen claims most people affected are earning more than $100,000: Federal Treasurer Chris Bowen says two thirds of people who lease cars earn more than $100,000 a year and Mr Hockey's figures are not as reliable. Professor Sinclair Davidson checks out Bowen's claim: Eighty per cent of work related car expense claims are made by individuals earning less than $80,000... Individuals earning less than $80,000 make 69 per cent of the dollar claims. All up the data that I can find from the ATO for 2010-11 are not consistent with Bowen's claim. But there is an important caveat â it is possible that the data I have extracted are not the data that he is referring to. I am not yet sure where I stand on the public policy merits of this change. But some things seem clear: More jobs seem at risk than the Government seemed to think. There was an appalling lack of consultation. There is doubt about the Government's figures on who will be affected. There seems to be a contradiction between this saving and government grants to the car industry. Thanks to reader Gab.