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.
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