Fringe benefit tax on specific categories of benefits: Free, subsidised or discounted goods and services
Subsidised transport
The liability of subsidised transport for fringe benefit tax applies only to employers who are in the business of supplying transport to the public (for example, passenger services by air, road, rail or sea).
As an employer in the public transport business, you pay fringe benefit tax on:
- A transport service that you provide to an employee at a cost that is lower than 25% of the highest fare charged to the public.
- This same subsidised transport service provided by a third party who is also in the public transport business.
Date published: 14 Oct 2004
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