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Ratepayers' council fuel bill $500,000 Ratepayers are footing a $500,000 a year petrol bill so staff at one of Sydney's largest councils can cut personal tax. Fairfield City Council staff are even using their cars to go interstate to avoid paying higher individual fringe benefit tax. The council provides 44 cars to employees, along with petrol cards which cost ratepayers more than $480,000 in fuel last year. This is an increase of up to $40,000 in the past two years and, with petrol prices soaring, the bill is expected to rise further. Employees are authorised to use the vehicles for private use as well as for council business, but must pay for the privilege under the fringe benefits tax system. The amount of tax for each vehicle decreases as the distance travelled increases. So if the employees do not drive long distances they have to pay the additional tax. It highlights a system that forces taxpayers to use their cars more rather than rewarding those who cut their mileage. A report tabled to the council last month said: "This is a current reality - staff who possess a fleet vehicle are driving long distances and even interstate to avoid additional tax." The cars are allocated to executive council members, including mayor Nick Lalich, who drives a Holden Caprice. Councillor Thang Ngo expressed his outrage that, with current petrol prices skyrocketing, the council was allowing workers to use the cars for long drives to minimise personal tax. He said he was concerned the council could not stop its staff from driving long distances. "The reality is that people are driving interstate with council cars, most with six or eight cylinder engines, and the council polity should not let that happen," Mr Ngo said. "We shouldn't be spending almost half a million dollars in petrol each year and it makes you wonder how much of that is related to council business or to staff who feel they have to travel long distances just to minimise their own tax liability," he said. While the council has offered to address the issue at the National General Assembly of Local Government in November, Mr Ngo is calling for a review of the council's passenger fleet policy. He forwarded his concerns to the city manger yesterday and expects to raise the issue in council meeting if not resolved. Acting executive manager of city services, Deborah Sandars said the council believed the current tax system relating to fleet cars encourages additional driving to avoid taxes. Ms Sandars said the council was considering reducing the number of vehicles in the fleet and, in coming months, replacing vehicles with smaller, more fuel efficient cars that run on electricity as well as petrol. She stressed council did not encourage staff to drive further to reduce fringe benefit fax payments and insisted council regularly monitored fuel expenditure. "The current national taxation system does, however, benefit drivers who drive greater distances, rather than rewarding those with lower kilometres travelled. WE believe this should be reviewed for the benefit of the environment," Ms Sandars said. |