OK - Maybe I'm a cynic, but I'm not buying the story of Melbourne based NLC laying off 50% of their workforce because of the governments decision to make changes to the FBT laws as reported in the Sydney Morning Herald today, and as per the Directors interview last night on the ABC's 7.30 program.

First some background. 2 days ago, the Treasurer announced a policy change to the option of just nominating an amount of personal KM's travelled in a company car to reduce the FBT paid.

This is not actually a change to how FBT is calculated, or how you might make a tax claim for using a personal car for business use (or a business car for personal use), its simply a change that would require the driver to maintain a log book for 3 months, to accurately reflect the proportion of personal use versus business use.

If people were honestly estimating their use, keeping a log book should, within reason, only back up the number previously nominated under the Statutory Formula process. It may even prove in some cases that the driver was underestimating their business use and prove more beneficial.

These changes doesn't take effect until the next FBT period, which commences on April 1, 2014

This change, is of course subject to it being passed into law, which will require the current government to sit again before an election, or the Rudd government to win the next election.  The legislation then has to pass both the lower and upper house, before coming into law. In either case, there are serious questions around if this policy will ever make it into law anyway.

So back to NCL - I'm sorry Mr Wilson, I simply don't believe, that based on this, with all the variables at play, and in only 48hrs, you were able to absorb the decision, consider its impacts and make a choice to terminate 50% of your workforce - a selection of whom you pointed out last night are not only employees, but also friends? Even if the phones did stop ringing, and the applications did stop arriving - seriously, a decision of this magnitude to your business and your people based on just a day or two of reaction?

Now don't get me wrong, I think the policy stinks. My business and I will be effected by this proposed change. I'm not a fan of any more requirement for red tape and process on business, and I hope one way or the other this policy never actually makes it into legislation. But in the meantime, NLC, Mr Wilsons and others, lets be a little bit honest about whats really going on, so we can address real and root causes, instead of just blaming the latest headline.

The world according to Shane - Business it tough. In all sectors. Margins are getting squeezed, companies are going broke and staff are being laid off. But if we can't be honest with ourselves, our customers and our staff about the real reason behind our decisions, how can we expect anyone to actually make any significant changes to address the situation.

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