FBT and taxi travel

FBT exemption

Employers must pay fringe benefits tax (FBT) on certain benefits they provide to their employees in respect of employment.

However, some benefits are exempt from FBT or receive concessional treatment.

Taxi travel by an employee is an exempt benefit if the travel is a single trip beginning or ending at the employee’s place of work.

Taxi travel can also be an exempt benefit if it is a result of sickness or injury and the 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.

This exemption is limited to travel undertaken in a vehicle that is licensed to operate as a taxi by the relevant state or territory. It does not extend to travel undertaken in a ride-sourcing vehicle or other vehicle for hire that do not hold such a licence.

Employers who let their staff use ride-sharing services such as Uber, instead of a taxi, could be hit with a hefty tax bill. Call the team at Salisburys Accountants in Albury NSW on 02 6041 3014 for clarification on your FBT exposure.

Source ATO