FBT Q&A – Novated lease of an e-bike

Question

We have recently had a number of staff enter into novated lease agreements for e-bikes.

Given e-bikes are not considered a ‘car’ benefit, what is the FBT treatment?

Answer

It is correct that an e-bike is not a ‘car’ for FBT purposes and so no car benefit arises where e-bikes are provided by way of novated lease.

However, the provision of an e-bike via a novated lease arrangement will result in a residual benefit arising. If the only private use of the e-bike consists of solely commuting to and from work and other private travel that is minor, infrequent and irregular, exemption from FBT is available.

ATO class ruling – CR 2015/80 – discusses the provision of e-bikes to employees by way of novated lease in detail.

This article provides a general summary of the subject covered and cannot be relied upon in relation to any specific instance. It is not intended to be, nor should it be relied upon as, a substitute for professional advice. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use.

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.