"The ATO says Uber and other ride-sourcing cars are not taxis for the purposes of fringe benefits tax exemptions"
Don't think too many. Corporate accountants have known it was a likely outcome for a while.Well I'm glad that's been cleared up I don't understand FBT, but suspect this might cost us some corporate clients.
That’s true.Well I'm glad that's been cleared up I don't understand FBT, but suspect this might cost us some corporate clients.
as far as I know business trips are only related to business, all other trips like getting to work and going out - non related...No.... What people are missing is the starting and ending destination determine if FBT will be applicable. Not a blanket all business trips.
Good thinking, done.I urge drivers to communicate with the federal Treasurer Josh Frydenberg to request urgent legislative amendments to extend the present fringe benefits tax exemptions for certain taxi trips to similar trips made by rideshare and other taxi-like vehicles.
Be sure to request a reply.
You can do so via https://treasury.gov.au/the-department/contact-us/ministerial-correspondence.
Alternatively, you may wish to make representations to Prime Minister Scott Morrison (ScoMo) via https://www.pm.gov.au/contact-your-pm.
Here’s the text of my own representations to Treasurer Frydenberg:
Minister you wish to contact
Treasurer - The Hon Josh Frydenberg MP
Your message to the Minister
FRINGE BENEFITS TAX AND RIDESHARE DRIVERS
The Australian Taxation Office recently confirmed its interpretation that the fringe benefits tax exemptions for specific cases of employee taxi travel do not extend to similar trips in rideshare vehicles (such as Uber) or other vehicles for hire.
If the Tax Office cannot see its way clear to changing this view, it is important that the Government as a matter of urgency sponsor legislative amendments to ensure that trips in rideshare vehicles and other for hire vehicles give rise to the same fringe benefits tax exemptions in all cases as apply to taxi trips.
There can be no policy basis for the present discriminatory treatment given that rideshare is now legal and regulated in all states and territories.
Would you please reply.
That’s the nub of it.Concerning that the media have already got it wrong and are starting to imply the FBT exemption issue affects trips to meetings or conferences. It only applies where the trip is from work to the employees home because that is not seen as strictly business related travel