Proposed changes to fringe benefits tax (FBT) will make the tax system fairer and more sustainable, Workplace Relations Minister Bill Shorten says.
Labor is facing a backlash from motor industry groups over the changes which would affect the FBT governing car leasing and salary sacrifice packages.
Mr Shorten said the legislation was not retrospective and did not affect people who used their car for work.
"What changes at the margins is the provision of unsustainable tax concessions to people's personal use of motor cars. Many Australians don't get that current benefit," he said in Melbourne on Friday.
"These tax changes are about making our tax system in the future fair and sustainable for all Australians."
Mr Shorten said the government had a strong policy of support for the car industry and met with it regularly.
The reforms governing car leasing and salary sacrifice packaging are expected to generate $1.8 billion over four years, with the savings used to support Australia's transition to a floating emissions trading scheme (ETS).
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