The ATO confirmed that ride-sourcing is now considered ‘taxi travel’ for fringe benefits tax (FBT) purposes. This change is because of amendments to the Fringe Benefits Tax Assessment Act 1986, which are now law. Travel by Uber and other ride-sourcing services now qualifies for fringe benefits tax (FBT) exemptions on the same footing as traditional taxis.
Employers are now eligible for the exemption for travel provided to their employees in a single trip to or from the employee’s workplace:
- on or after 1 April 2019
- in a licensed taxi or other vehicle involving the transport of passengers for a fare – other than a limousine – such as a ride-sourcing vehicle.
Employees can also be eligible for the FBT taxi travel exemption on or after 1 April 2019 if it’s as the result of sickness of, or injury to, the employee, and whole or part of the journey is directly between:
- the employee’s place of work
- the employee’s place of residence
- any other place that it is necessary, or appropriate, for the employee to go as a result of the sickness or injury.
“The change is designed to help minimize compliance costs for businesses providing transport for their employees.”, said ATO Deputy Commissioner John Ford. Any benefit from travel by an employee using a registered taxi or ride-sourcing provider (other than in a limousine) is now exempt from FBT subject to meeting certain criteria.
For more information on the FBT taxi travel exemption, go to ato.gov.au/FBTtaxi.
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