The provision of travel in a taxi by an employer to an employee is generally regarded as a benefit attracting FBT. But where the travel is a single taxi trip beginning or ending at the employee's place of work, or is a taxi trip due to illness of the employee, an exemption applies.

The ATO has previously advised that this exemption, “does not extend to ride-sourcing services provided in a vehicle that is not licensed to operate as a taxi.”  In light of a recent Federal Court decision regarding Uber and proposed changes to licensing regulations in a number of states, the ATO is reviewing its interpretation of the definition of “taxi” and has released a paper to facilitate discussion.  It is quite possible that the ATO may adopt an interpretation that accepts that a taxi may include a ride-sourcing vehicle or other vehicles for hire.

Until this matter is resolved, occasional private travel (including between home and work) using ride-sourcing vehicles and other hire vehicles may possibly be exempt from FBT under the minor benefits exemption.

Cathy Braun

New to Saward Dawson? Book a free 30 minute consultation

We happily spend 30 minutes without charge with new contacts to explore relevant issues and outline how we can assist. Let us know your area of interest and we will arrange a specialist to meet with you.

Subscribe to e-bulletins

Subscribe Now

Stay Connected