On 27 September 2017 the Australian Taxation Office (ATO) issued discussion paper TPD 2017/2 for public consultation on the interpretation of ‘taxi’ for Fringe Benefits Tax (FBT) and the taxi travel exemption.
After consultation, and considering administrative options, the ATO have confirmed their existing view from September 2017 that the FBT taxi travel exemption only applies to travel undertaken in vehicles licensed to operate as a taxi by the relevant state or territory.
If an employer provides employees with travel in a ride-sourcing vehicle or other vehicles for hire that are not taxis, e.g. Uber, Ola, etc., the expense may be subject to FBT unless another exemption or concession applies.
Any benefit arising from taxi travel by an employee is exempt from 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.