Is the crackdown on tax-breaks for car leasing a good move, or policy on the run?

Labor says its plan to tighten fringe benefits tax (FBT) guidelines on car leasing and salary-sacrifice packaging ensures compliance.

Australia's manufacturing sector contracted for its fourth straight month in June, a study shows.

But the opposition wants the government to prove the current system is being misused by high-income earners who use luxury cars and claim personal mileage as a work-related expense.

Under the plan, the federal government hopes to raise $1.8 billion to cover the cost of moving from a carbon tax to an emissions trading scheme by requiring FBT car claims to be monitored via log books or through online apps.

There are now two methods to calculate FBT, with the Government scrapping one system that effectively assumes 20 percent of the use of a company car is for personal reasons.

The industry has demanded the Government scrap the move, arguing it will 'decimate' carmakers, suppliers and those involved in leasing.

What do you think - is the federal government's announcement a good move or policy on the run?