Opposition Leader Tony Abbott doubts the federal government's planned changes to fringe benefit tax (FBT) on car leasing and salary sacrifice arrangements will bring in the revenue it says it will.
Last week the government said it was changing the FBT arrangements on cars to bring in $1.8 billion to help pay for dropping the carbon tax in favour of an emissions trading scheme one year earlier than planned.
"It almost certainly won't collect the revenue that is claimed because of the damage it will do to economic activity," Mr Abbott told reporters on Monday after meeting industry representatives in Melbourne.
He described it as another "mining tax moment" from Prime Minister Kevin Rudd because he didn't understand how to run a consultative government.
Mr Abbott reiterated that a coalition government would not go ahead with the change.
Australian Automobile Association chief executive Andrew McKellar said opposition to the FBT changes were unifying the entire industry and car market.
"It will impact many, many people through their remuneration arrangements, far more than the 320,000 that has been suggested by the government," Mr McKellar said.
Australian Motor Industry Federation chief executive Richard Dudley accused the government of failing to consult.
"Last Tuesday's announcement came as a massive shock," he said.
"Car dealers are reporting that sales are already falling. That will have a material impact on jobs."
Australian Salary Packaging Industry Association president Leigh Penberthy said industry heads were meeting with government representatives on Monday to discuss the "profound effects" of the announcement.
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