FBT Taxi Exemption extended to Ride Sharing

In September 2019, Mazars published an article on the draft legislation proposed to extend the FBT exemption for travel between home and work to ‘any vehicle used for taxi travel’ with the intent of including ride sharing vehicles.

In addition to this Mazars put in a submission to the Treasury recommending the legislation commence from the start of the FBT year to avoid causing confusion and more record keeping requirements. 

We are pleased to announce that the Government has finally passed laws to treat ride-sharing vehicles the same as taxis to allow the FBT exemption for travel between work and home.

The exemption applies to travel by way of a motor vehicle (other than a limousine) involving the transport of passengers for a fare. That is, the exemption can apply to travel in ride-sourcing vehicles where the above requirements are met.  Importantly, the amendments to the law commence on 1 April 2019.

Any employers that have paid for, or reimbursed ride-sharing fares and included them as a taxable fringe benefit on their 2020 FBT return should consider amending the return.

If you have any questions regarding the FBT please speak to your usual Mazars advisor or alternatively our tax team on:

Published: 30/6/2020

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