Greens call for $1bn fringe-benefits cut

THE Greens have called for a $1 billion cut in fringe-benefit tax concessions for company cars.

THE Greens have called for a $1 billion cut in fringe-benefit tax concessions for company cars to soften the impact of next month's budget on average families.

But the minor party's leader, Bob Brown, also guaranteed that while he expected he would not like the May 10 budget, which Julia Gillard warned would be tough, the Greens would pass it after attempting to moderate its heaviest impacts.

His comments came yesterday as medical researchers warned that up to 1600 medical researchers could lose their jobs and life-saving medical treatments would not be trialled if Canberra went ahead with cuts to medical-research funding in the budget.

Last week, the Prime Minister warned the budget would be tough as Labor sought to deliver on its promise to restore the budget surplus by 2012-13.

Yesterday, Senator Brown rejected heavy cuts to services and produced Treasury costings showing reductions in FBT concessions on company cars could save $1 bn over four years, based on replacing the existing formula for calculating car fringe benefits with a single rate of 20 per cent, regardless of kilometres travelled.

"If the government is serious about reducing the economy's reliance on fossil fuels, reducing tax breaks that reward people for driving longer distances in company cars should be included in next month's budget," Senator Brown said.

Health Minister Nicola Roxon has fuelled mounting fears that $400 million will be cut from medical research by warning researchers they can no longer be quarantined from budget savings and that she has a "difficult message" for them in the budget.