[SteveO]

I was wondering in NZ do Company Cars get given as part of the job package?

If so what type?

Is there a standard model that is expected for business meetings i.e. in UK a BMW 3 series or Audi A4 is a benchmark.

I may have to buy something if not provided and therefore need to budget, thanks for any help in this area.

[eternalkiwi]

Company cars may be provided to sales reps or may be an option for senior managers.
Other than these roles assigned company cars are rare.

Some companies provide pool cars for staff to use for business travel between the office and a client. These cars can either be from a pool of 'office' cars or possibly be company cars belonging to senior managers or other staff.

In NZ 3 series and A4's are not normal company cars, company cars typically are Toyotas, Hyundais, Fords or Holdens.

[Avalon]

Company cars given to individuals are almost non existant. This is because as well as you paying tax on the benefit as you would in the UK, the company has to pay "Fringe Benefit tax" on it at 33% of the value - so they dont bother.

Some companies have ways of getting round this by allowing you to "salary sacrifice". Telecom for expamples gets company cars for managers. Basically - you "sacrifice" say 20K of your salary (you still pay tax on that) and use that to lease a car from Telecom. Not really a benefit to my mind unless you were going to lease a car anyway or have to buy a car on credit. You do get a fuel card with though - and that can be worth quite a bit.

Some other companies give a stash of cash towards running a car. Say 20k a year on top of your salary. You get a lump sum, and again you pay tax on that - but that is for you to purchase and run a car of your choice.

Both those get round the company paying FBT.

If you are really jammy - you may be able to wangle a fuel card. You tend to have to do salary sacrife for that too - but as long as you know you are going to buy spend more on fuel than the card costs you - do it. Unisys gave one to my hubby - and we saved over 6k in a year with it. Most people in the company who had them paid about $300 a month for the fuel card - but bought about $150 a fuel a month on it :confused: Apparently - unisys were miffed that we actually spend more than $300 on fuel a month :confused: :confused:

So basically - dont hold your breath!

[eternalkiwi]

FBT is a key reason why companies do not generally offer cars and other benefits. FBT applies to any benefit an employee receives due to being employed by the company. This would also apply to loans or 'grants' made by a company to an employee and medical insurance.

With recent changes to FBT, companies have the option of paying the same level of FBT as an employees normal PAYE rate, which has removed a big portion of the disincentive that previously existed.

Cash grants given instead of a car would be taxable to the employee, so the company could pay the same tax as if they were providing a car of the same annual value. Though with the added income the employee could now be in a higher tax bracket and/or qualify for a reduced level of government support.

[jubjub]

Of all the IT jobs hubby went for only one offered a car, think it was a Subaru Forester....

He just gets a monthly car allowance as he has to travel to different client sites, think its $500..