Taxis exempt under FBT but Uber / Ola are not!!

Any benefit arising from taxi travel by an employee is exempt from fringe benefits tax (FBT) if the travel is a single trip beginning or ending at the employee’s place of work.

Any benefit arising from taxi travel by an employee is also an exempt benefit if the travel is both:

  • a result of sickness of, or injury to, the employee
  • 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
  • any other place that it is necessary, or appropriate, for the employee to go as a result of the sickness or injury.

However, 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 in a vehicle that is not licensed to operate as a taxi.

 

Need Help?

If you require any further information, please contact one of our tax accountants on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment or teleconference. Alternatively, please click here to submit an online enquiry form.

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