Taxi travel by an employee is an exempt benefit for fringe benefits tax (FBT) purposes if the travel is a single trip beginning or ending at the employee’s place of work (or if it is a result of sickness or injury in certain circumstances).
However, the ATO is reminding taxpayers that this exemption is limited to travel undertaken in a vehicle that is licensed to operate as a taxi by the relevant State or Territory, and does not extend to travel undertaken in a ride-sourcing vehicle or other vehicle for hire that do not hold such a licence.
The ATO defines ride-sourcing, or ride-sharing, as an ongoing arrangement where:
- a driver makes a car available for public hire for passengers
- a passenger uses a third-party digital platform, such as a website or an app, to request a ride, for example, Uber, Hi Oscar, Shebah, or GoCatch
- a driver uses their car to transport the passenger for payment (a fare)
The exemption is only for travel undertaken in a vehicle licensed by the relevant state or territory to operate as a taxi. Read more about this on the ATO website.