The latest tax Bill proposes a subsidy by an employer – mainly for the purpose of an employee travelling on public transport between home and work – will not be subject to fringe benefit tax (FBT).
Public transport means bus, train, ferry, tram or cable car. It does not include airfares, taxis, shuttles and E-scooters.
The Government plans to bring this law into effect from 1 April 2023. Obviously, if your business is a company, you can also subsidise yourself, as an employee, for public transport.
