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FBT exemption for taxi travel explained

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FBT exemption for taxi travel explained

Australian taxis

The ATO has issued a tax-time clarification about how employee travel in taxis is treated under the fringe benefits tax (FBT) framework.

It said that an exemption from FBT is applicable for taxi travel where it involves a single journey, and which either begins or ends from the employee’s place of work.

The exemption also covers taxi travel if it is required as a result of sickness or injury, where the journey, or part of it, is directly between the employee’s place of work and their home, or any place deemed necessary as a result of the injury or illness (such as a hospital).

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“This exemption is limited to travel undertaken in a vehicle that is licensed to operate as a taxi by the relevant state or territory,” the Tax Office said in its alert to employers.

“It does not extend to travel undertaken in a ride-sourcing vehicle or other vehicle for hire that do not hold such a licence.”

Other FBT exemption and concessions, including work-related items, minor benefits, concessions for not-for-profit organisations and living away from home allowances can be found on the dedicated FBT page of the ATO website.

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