The mere use of a taxi does not provide an employer with an automatic entitlement for that expense to be FBT exempt. Every time you provide a non-cash benefit to your employees, you need to work out if that benefit attracts fringe benefits tax (i.e. was the expense incurred for business or private/domestic purposes).
Some benefits may be exempt from FBT. Taxi travel is exempt from FBT where the travel is a single trip beginning and ending at the place of work. Taxi travel is also FBT exempt where the travel between work, home or another place is necessitated due to the sickness or injury of the employee.
It must be noted that these FBT exemptions only apply to travel in vehicles ‘licenced to operate as a Taxi’. At Law, these rules do not automatically extend to travel in ride-sourcing vehicles or other vehicles for hire.
Date of Issue: 1 August 2019
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