The ATO has clarified that any benefit arising from employee travel by taxi, and not a ride-sourcing service, is exempt from fringe benefits tax (FBT) if the travel is a single trip beginning or ending at the employee’s place of work.
In particular, the exemption is limited to travel in a vehicle licensed by the relevant state or territory to operate as a taxi. It does not extend to ride-sourcing services provided by a vehicle (such as Uber) that is not licensed to operate as a taxi.
Any benefit arising from taxi travel by an employee is also an exempt benefit if the travel is a result of sickness of, or injury to, the employee, and b) the whole or a part of the journey directly between any of the following:
– the employee’s place of work
– the employee’s place of residence, and
– any other place that it is necessary, or appropriate, for the employee to go as a result of the sickness or injury.
Original credit source: ATO website, 8 July 2019.
