Under FBT legislation, employers do not need to pay FBT for costs paid on behalf of employees for trips to and from work.
This is regardless of the volume of trips made and does not rely on the minor benefits exemption which applies for any personal benefit which is under $300 and is minor and infrequent.
A recent ATO ruling has confirmed that this exemption applies only for taxi services and not for other ride souring vehicles such as Uber. As such, unless the minor benefits exemption is able to apply, employers would be liable for FBT for trips that would be exempt if taken in a taxi. Given Uber is a cheaper method of transport, many employers may be encouraging their staff to utilise this option unaware of the hidden FBT cost which would most likely make the trip more expensive than a taxi.
If you have any queries or need assistance with any FBT matter, please do not hesitate to contact us.