We would like to seek advice in regard to the FBT implications where employees charge their private scooters/e-bikes and electric vehicles at our work premises on a regular basis.
The provision of electricity by you in the circumstances you have described will give rise to a residual benefit per section 45 of the FBTAA.
We are not aware of any specific exemption that can apply in this situation nor any specific guidelines for employer’s to use to estimate the electricity costs being utilised. If the charging is a regular occurrence it is difficult to see the minor benefit exemption being available.
The ATO has issued a draft Practical Compliance Guideline PCG 2023/D1 in respect of home electric charging costs for zero and low emission vehicles (ZLEV) that provides a rate of 4.2cent/km. Of course, this is only relevant to ZLEV cars, not for e-bikes and e-scooters.
We anticipate this issue being raised, or already having been raised, with the ATO and hope that guidance for employers is issued in due course.
We will be covering topics such as this and many others at the 2024 FBT Roadshow. Come join us, find out all you need to know about FBT obligations and be prepared in 2024!
Join us for the 2024 FBT Roadshow, covering key issues for Governments and NFPs | Brisbane, Darwin, Melbourne & Online | 19 March – 9 April 2024 | Click here for more information and to register >
If you would like to become a member, please contact us at admin@taxed.com.au.
Subscribe to our newsletter for more updates and articles.
This article provides a general summary of the subject covered as at the date it is published. It cannot be relied upon in relation to any specific instance. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use. It is not intended to be, nor should it be relied upon as, a substitute for professional advice.