Issued
01 Apr 2009

Subsidised transport provided by employers to employees - value for fringe benefit tax purposes

BR Pub 02/01 covering FBT and subsidised transport provided by employers to employees will not be reissued. The ruling ended 1 Jul 2007.

BR Pub 02/01 applied from 1 July 2002 to 1 July 2007. It was a reissue of BR Pub 99/02, which applied from 1 July 1999 to 30 June 2002. Since the ruling was reissued, the Income Tax Act 1994 has been repealed and replaced with the Income Tax Act 2004, which has also now been repealed and replaced with the Income Tax Act 2007.

The provisions in the Income Tax Act 2007 (sections CX 2, CX 9, RD 33, RD 54 and the definition of “subsidised transport” in section YA 4) clearly provide the method for valuing the benefit for fringe benefit purposes where transportation or entitlement to transportation is provided by an employer to an employee, in circumstances where that employer carries on a business that consists of or includes transportation of the public. The 2007 legislation has clarified how the benefit is to be valued when it is provided by a third party under an arrangement with the employer.

As a result of these clarifications to the law, BR Pub 02/01 will not be reissued.