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.
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.