ALP to blame for lost revenue: MMS

McMillan Shakespeare says Labor's FBT changes cost it two months' revenue.

McMillan Shakespeare (MMS) has blamed the former Rudd government's now revoked changes to fringe benefits tax rules for two months' worth of lost revenue, The Australian Financial Review reports.

According to the newspaper, chief executive Michael Kay said it had been impossible for the salary packaging company to sell new novated lease vehicles since former treasurer Chris Bowen announced the changes on July 16.

“A lot of tenders were withheld or suspended," he said.

"We couldn’t implement new contracts that had been won prior to 16 July because of course there was no point with the uncertainty.”

He said the impact would have a "material adverse effect" on remuneration services in the financial year, the AFR reports.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles