FBT on Subsidised Transport
Did you know that subsidising your employees for cost of travel between work and home is not a fringe benefit if they are travelling by bus, rail, ferry, or cable car? Low emission transport options like e-bikes, bikes, and scooters, are also set to become exempt in an effort to level the playing field for eco-friendly options when employers are choosing which transport benefits to offer their staff.
The way you provide this benefit matters, though, as providing a transport pass is not subject to FBT but providing money to buy a transport pass is.
Fringe Benefit Tax can be overwhelming, reach out to Rural Accountants today to find out how you can make sure you’re getting it right.