Question
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.
Answer
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.
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