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Uber travel expenses not FBT-exempt

Posted by Northadvisory on July 29, 2019

The ATO has clarified that any benefit arising from travel by taxi, and not a ride-sourcing service, by an employee is exempt from fringe benefits tax (FBT) if the travel is a single trip beginning or ending at the employee’s place of work.

In particular, the exemption is limited to travel in a vehicle licensed by the relevant state or territory to operate as a taxi. It does not extend to ride-sourcing services provided in a vehicle that is not licensed to operate as a taxi, such as Uber.

Any benefit arising from taxi travel by an employee is also an exempt benefit if the travel is:

  • a result of sickness of, or injury to, the employee, and
  • 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, and
    • any other place that it is necessary, or appropriate, for the employee to go as a result of the sickness or injury.

If you have any questions regarding the above matters, please do not hesitate to contact us.

Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au