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Taxi, ride-sourcing and public transport exemptions

Travel by your employees in taxis to or from the workplace, or on public transport you operate, may be exempt from FBT.

Last updated 11 January 2023

Travel in taxis and ride-sourcing vehicles

If you pay for your employee to travel by a taxi or ride-sourcing vehicle (but not a limousine), the travel is exempt from fringe benefits tax (FBT) if it is a single trip that begins or ends at the employee's place of work.

The travel is also exempt from FBT if it arises from sickness or injury to the employee, and all or part of the journey is directly between any of the following:

  • the employee's workplace
  • the employee's residence
  • any other place it is appropriate for the employee to go as a result of the sickness or injury.

Public transport

If you operate a public transport business, and you provide free or discounted travel (other than in an aircraft) to your employees for travel to and from work, or more generally on your scheduled metropolitan services, it is an exempt benefit.

The exemption also applies if the benefit is provided by an associate company that operates a public transport business.

The exemption does not apply, however, if the transport is an in-house benefit that's provided under a salary packaging arrangement.

Providing travel on public transport to a police officer for travel between their residence and their primary place of employment is an exempt benefit.

For more information on the public transport exemption, see FBT guide: 20.2 Transport exemptions.