Why is Uber NOT FBT Exempt in Australia


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FBT Exemption Differences – Uber v Taxi.

The Australian Taxation Office has confirmed that employers across Australia who have been letting their staff use ride-sharing services such as Uber, rather than a licensed taxi, could be liable for big tax bills.

The reason is based on this:

    • A taxi fare is FBT exempt, when provided by a service that is licensed to provide rank and hail work.
    • Very few Uber, or other ride share service drivers, hold such a licence.
      Taxi drivers do.

www.ato.gov.au/…/taxi-travel-expenses-exemption/

Any benefit arising from taxi travel 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.

Any benefit arising from taxi travel by an employee 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.


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