Ford Grunt

Nice ride Panda. Good to see you updated to the ba/bf range (I remember that you were looking to lease one last year) Cheers, Ford Grunt (Ben)

This is exactly right. A redundency is where the JOB not the person becomes redundent, ie job ceases to exist. Id check whether its definately a redundancy at all or just a 'golden handshake' (ie simply a payout like you hear of in the media of CEOs of public companies getting lump sums). All redundancies and early retirement schemes have to be approved by the Australian Taxation Office, so there is a way to find out. That way you know what you are dealing with. From a tax perpective: The redundancy amount as distinct from the annual leave, sick leave (where applicable) and long service leave are TAX FREE for every full year of service (so if it was 26 years and 364 days it would be rounded DOWN to 26 full years) which should be around $6,200 + $3,100 for every year of service ie. $6,200 + ($3,100 x 26) = $80,600. Some amounts will be treated as part of an Eligiable Termination Payment (ETP) and some not, then you have pre 83 and post 83 components Even as an accountant that I am, its still all fairly complicated, when ever I need to do or check a calc, I always to check back to ATO guidelines. I suggest you have a general browse over this, even though its designed for information to employers still provides the relevant info: http://www.ato.gov.au/super/content.asp?do...5.htm&page=1&H1 Hope this helps. Cheers, Ford Grunt (Ben)

It may also depend on if you need to finance the purchase of the business and how this affects your borrowing capacity as to whether there will be enough to service both the lease and business purchase loan. FG

If the business you are looking at buying has a solid profit/cash position you should no worries getting a lease in the businesses name. Otherwise, you could try for a 'novated lease' between yourself and the new business, provided the business is/will be conducted though a company or trust. A novated lease always reverts to yourself if a payment are not made, so if your person position is solid again you should have no worries. Cheers, Ford Grunt (Ben) edit: didnt notice your post Zap_F6, didnt scroll down far enough. I agree with you as well.

Can always try figure 8s on dirt road to mix it up, watch the stones but. (/me reminises about doing figure 8 donuts on dirk track in 72 Celica as teenager) FG

Id even consider second hand. Got mine mid last year, 2003 BAXR6T already modded with rebuilt engine & auto gearbox with 300+ kws for $37k (as a bonus was most of the work was done by Autotech in Sydney) more details here: http://www.fordxr6turbo.com/forum/index.php?showtopic=17275, when dealers were still flogging them for $33+ stock. Cheers, Ford Grunt (Ben)

Hey, thanks alot for both of your help FG

Good luck with your next run Steve. Would be good to see a 2 tonne ute become Australia's fastest XR6T. Cheers, Ford Grunt (Ben)

Thought Id drop the question here as semi-relevant, trying to track down a bloke I was talking to at the dyno day, as top bloke. Anyway, was talking to a bloke that attended the dyno day (sorry mate can't remember your name, sh*t with names) at one point we while hanging around my silver ute, one with tool boxes (behind muzzas on the day) with my bonnet up, a bunch of us were talking about mods to each others cars. This may also spark memories, he was from Newcastle, he'd done his BAXR6T engine in and was talking about getting an short Atomic engine, replacement. Im blo*dy hopless can't remember his member name either (looked through member list to try to spark memory for no luck). Was going to hook up before I left to get details, but couldn't spot you buddy. Wouldn't mind catching up with you Newy guys again anyway. Chris, you may remember? Pretty sure he was talking to you at some point, when you where maning the BBQ. Cheers, Ford Grunt.

Looks and sounds like it is shaping up to be a very sweet ride. Cheers, Ford Grunt (Ben)

Ha ha resident expert. Had just been replying to few other questions and happened to be in 'da house'. FG

No worries anytime. :banghead: FG

Yep, they will all be fully deductable. In fact, any cost providing its not a capital improvement (ie making it better than it originally was) will be fully tax deductable. FG

Obviously tab & I were replying at the same time Your right again tab, less the GST on each lease payment. fpvT6, read my post #32 if you want to know how GST applies. FG

Im assuming the new bobcat/tipper will be used as part of your business (ie in generating its income) then what means is that the lease payments themselves will be fully tax deductable (ie are reduced off your income). As opposed to when you buy it outright/chattel morgage or HP them, you claim depreciation (ie write off the cost of them over a number of years) and a proportion of the interest on the chattel morgage or HP if financied that way. Hope this helps. Cheers, FG

A novated lease is in principal is no different to a lease (with no novation agreement). Have a read of my paragraph 1 of post #4 in relation to this. Anyways, the way you finance the vehicle does not change the FBT treatment. It may mean you cannot salary package the vehicle (see again post #4) and may affect your treatment of claiming GST if its in your business (as I talk about in post #32). You have just got a few dorks who don't know what they are talking about Cheers, FG

Chattel mortgage is like a car loan, you can claim the GST on the purchase on the vehicle upfront on its purchase if your registered on a cash basis, where as to get the same benefit on a HP you would have to be registed on an accruals (ie non-cash) basis. Given that's its your own business, you have the flexibility of financing how you want. The GST timing of claiming is a usually a big thing for any tax clients I work on. Most want to get the GST back straight away (ie next BAS (ie GST return) so they pay cash, go car loan or chattal mortgage (if on GST registed on cash basis) or if accruals for GST, extra flexibility of choosing HP. For leasing (including novated leases) you can only claim GST on each payment (as you dont own the vehicle - the lease company does), which will then depend on the spread of the lease term as to how long you need to wait before you have claimed all the GST back. Read back over my post #4 regarding the flexibility of using a novated lease instead of any other form of financing but beware of the financial penalities/traps I talk about with regards to leases (including novated leases)/HPs in post #12. Cheers, FG

tab dead on the money. Utes less than a tonne are treated as cars unless you decide to treat them as FBT exempt. This means you need to follow the exemption rules: ie to & from work travel is exempt but private use must be minor, infrequent and irregular travel. The ATO also don't clearly define the meaning of minor, infrequent and irregular travel, it appears to purposing be left vague, so it can be considered on a case by case basis by the ATO. If you fail, the exemption (or don't apply it) therefore it will be treated as a normal car fringe benefit not a residual benefit (see Mick Molloy's link). Cheers, FG

Me three. Did the same, spend good part of Saturday, tightning everything I could see, turbo manafold, exhaust manafold, turbo bolts (man some of these are hard to get at). Still, was leaking! I had a bolt missing from the turbo about 1 month ago, till I had it replaced. My turbo bolts and turbo manafold in particular are working themselves loose, being main reason mine was done on kws and running lean (due for a retune too). Im keen for a fix as well. Cheers, Ford Grunt.

If you don't mind Chris, if you could post up the results. Im interested to see the spread of results. From what I was hearing, there were number of cars hitting around the 300rwkw mark. Cheers, Ford Grunt.

Great day, well organised, good crowd, good show of cars. I put my 'tool box' bandit on dyno (silver ute with shiny boxs) achieved 296.0rwkws. (which was about what I expected given an exhaust leak at headers or turbo manafold (spent good part of Sat trying to fix it) + its running a little lean uptop). Anyways awesome day, was great to see some of the other Newcastle members who some how never see on the road. Cheers, Ford Grunt (Ben)

The Tornado will be right, it will be exempt. Ive looked at this ruling extensively and while as tab said it relates to duel cabs the ruling also covers single cabs. The vehicle can be treated as exempt where the vehicle is "principally designed to not carry passengers". Which is a statement which generally refers to commercial vehicles like vans & utes. For this the ruling refers to a formula for calculating whether the vehicle will be exempt, which is simply the GVM less the Tare Weight to give the carrying capacity, this is then compared to a average adult weight which they say is 68kg. In my case the carrying of a BAXR6T is 600kg which is compared to 136kg ie. 136:600. As the carrying capacity for carrying passengers is primarily less than that for carrying a load (ie less than 50%) then it can be treated as exempt. Further to note is the vehicles listed in the ruling and Amendums are not an exhaustive list. As F6 Ute mentained 2024A2 came out on 13 July 2005 (I also remember this because its a day before my b'day) which is obvoiusly like he said was after the BA was released. The previous 2024A dates to 2000! Cheers, Ford Grunt

Nice looking beast mate, work of art. Cheers, Ford Grunt (Ben)

Hey Adrian, Unfortunately no surprises for me there on your findings. Leases & Hire Purchase (HP) agreements are different to ordinary car loans. With Leases & HPs the interest is charged to you upfront and you simply repay the amount in accordance with their repayment schedule, this is the reason you don't save interest (like a car / home loan) when you pay it out. One potential good thing is the interest therefore is effectively fixed for the term of the contract, so people that took at leases when interest rates where at their lowest in years about 1 1/2 years ago saved heaps. When I talk to a client, I always remind them of the fact that it is near impossible to get out of a lease / HP without a heavy financial penalty so I tell them to match the term of the lease / HP with the term they usually like to upgrade a car, ie. no point taking out a 5 year lease when you want to upgrade in 2 years. For example, I locked my novated lease on my ute for 5 years, but that's at least how long Im expecting to keep it for. Generally you can only get out of a lease / HP early without severe financial penalty if you are toward the end of the contract and you are going to write new business with them. Bit of a shame no-one (ie. financial broker or credit provider) didn’t explain this to you before, in your situation you would have been better with a car loan. Fact is though, you can only salary package on a novated lease, unless you want your employer owning you vehicle or you have your own business. Unfortunately, I can’t really suggest anything further, sounds as though you have already told them you going to write the new business with them and still want to charge you interest for the whole lease period. Cheers, Ford Grunt

This is referred to as a "fully maintained lease" which could also have a novation agreement attached to it. Thanks mate, just like to help fellow members to sort through some the unknowns. I suggest he change accoutants then... Glad I could help. I have always have a special interest in vehicles and hence in vehicle packaging. I personally package 3 vehicles, a modified a '03 BAXR6T ute (modified when I bought it) a '99 AUXR6 and a '80 v8 Fairmont Ghia. Cheers, Ford Grunt