FBT: Taxis and Ride Sharing

Paul talks about the FBT exemption for taxis and ubers for traveling work-related travel (to and from home to work).

Date published: 21 April 2022

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TRANSCRIPT

FBT, Taxis and Ride Sharing

So if I go back a step Uber's weren't taxis and therefore the concession in relation to taxis didn't apply. So the legislation had to be changed. So that rideshares like Ubers are now traded as taxis. Why is it important? And the answer is there's an FBT exemption for traveling directly from home to work and the other way, other way round.

So if, for instance, we had two partners, one needed a car, the other didn't. Rather than getting local public transport they'd prefer to get a cab on a regular basis and they decide that it makes good sense financially or just emotively, there's no FBT on a taxi directly to and from work each day. 

Now, if you ask me why, what's the policy reason, it totally escapes me. I cannot see any good policy reason why this part of the economy that is taxis and rideshare services should be able to provide services free of FBT. It just seems to me to be a nonsense. Nonetheless, it's there, so the question for all of our listeners is why not take advantage of it? A taxi directly to and from or a ride, and that includes in our rideshare providers directly to and from work, no FBT. Maybe, maybe sell that extra fossil fuel car and go back to a single vehicle.