900 jobs at risk as $700 million wiped off firm's value

Nine hundred jobs at Australia’s largest car leasing and salary package firm are at risk after the value of the company was halved following changes to tax rules on company cars. The 900 workers are employed at offices in every state and territory in Australia.

McMillan Shakespeare Group was valued at $1.3 billion before the Rudd Government announced sudden and sweeping changes to Fringe Benefits Tax on July 16.

But it was valued at $631 million this afternoon -- $8.47 a share compared to $18.00 nine days ago -- after it was forced to return to trading because the Australian Stock Exchange refused to grant an extension to the trading halt.

The firm, which handles an estimated 30,000 novated leases and company-car deals each year, had stopped trading on the Australian Stock Exchange immediately after the changes to FBT were announced.

A spokesman for McMillan Shakespeare Group said the company is not making any comment to media, analysts or shareholders. Formed in 1988 McMillan Shakespeare Group was the first company in Australia to offer salary packaging services and has since acquired other brands, trading as Maxxia, Remserv, InterLeasing and Holden Leasing.

The group provides salary packages, novated lease deals and tool-of-trade vehicles to federal, state and local governments, health workers, emergency personnel, and workers in the private sector.

This reporter is on Twitter: @JoshuaDowling