Tax Savings Strategy 195 | Taxi Travel

Employer provided taxi travel that is a single trip beginning or ending at the employer’s place of work will be tax deductible to the employer and an FBT exempt benefit to the employee. This enables an employer to provide an employee with a single taxi trip to the office everyday, and then another single trip home from the office every night (making the employee’s home to work travel tax deductible to the employer). 

In addition, any benefit arising from taxi travel by an employee is also an exempt benefit if the travel is both:

• A result of sickness of, or injury to, the employee.
• The whole or a part of the journey directly between the employee’s place of work, the employee’s place of residence, or any other place that is necessary, or appropriate, for the employee to go as a result of the sickness or injury.