Public transport - residual benefits
Legislative reference: subsections 47(1)External Link and 47(1A)External Link of the FBTAA.
Where you operate a business of providing transport to the public, providing free or discounted travel (other than in an aircraft) to employees of that business for travelling to and from work is an exempt benefit. Free or discounted travel on a scheduled metropolitan service you operate is also exempt.
Where the benefit is provided by an associate company, it is also exempt if both you and the associate carry on a public transport business.
Providing travel on public transport to a police officer for travelling between the officer's place of residence and their primary place of employment is an exempt benefit.
Public transport – residual benefits where the benefit is accessed under a salary packaging arrangement
The specific exemption that applies to residual benefits in respect to private home to work travel through public transport and travel on scheduled metropolitan services (where the employer and associate are in the business of providing transport to the public) does not apply from 22 October 2012 where:
- the benefit is provided in-house and
- the employee accesses the benefit under a salary packaging arrangement.
The concession continues to apply if either:
- the transitional rules apply
- the benefit is not accessed under a salary packaging arrangement.
Find out more
See section 18.4 of Residual fringe benefits for information about the transitional rules and what is a salary packaging arrangement.
End of find out more