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Taxis vs Uber: Employer Cost Analysis

Reconsidering Employee Travel: Tax Implications of Ride-Sharing Services

Driver helping clients with luggage at airport.

When paying for employees’ work-related travel, many employers think that Uber and similar ride-sharing services are the cheapest option. But recent information regarding tax breaks provided by the ATO may prove this to be the contrary. Australian employers whose staff have been using ride-sharing apps like Uber, rather than licensed services like taxis or Corporate Chauffeurs Gold Coast, may be liable for huge tax bills.

After two years of industry consultation, the ATO has concluded that while Uber and other ride-sharing services do not receive fringe benefits tax exemptions (FBT), they are still liable to paying goods and services tax (GST).

Any businesses that have previously used Uber or other ride-sharing travel for staff over the past few years may now be exposed and forced to pay FBT due to it not being considered taxi travel. 

This may mean the businesses and employers may incur significant, unforeseen costs.

Taxi travel, or travel by licensed chauffeur companies, on the other hand, has historically been exempt from FBT and continues to be so, as long as the travel is a single trip that begins or ends at the employee’s place of work.

Understanding FBT Obligations

The primary source of confusion, and the reason why many employers do not realise that they have to pay FBT on Uber trips, is the 2017 Federal Court finding that Uber drivers must pay GST. The recent clarification, however, confirms that employers who use Uber for their employees may not be saving as much money as they think.

“We have maintained our ongoing view that the FBT taxi travel exemptions is limited to travel undertaken in a vehicle licensed to operate as a taxi by the relevant state or territory,” an ATO spokesperson said.

So, while you may have been choosing Uber for your employees’ travel under the impression that it would be more affordable, you may have actually been doing yourself a disservice. These tax exemptions are just another reason why private chauffeur transfers are superior to Uber, and why you should opt for our corporate car hire services over Uber.

So, while you may have been choosing Uber for your employees’ travel under the impression that it would be more affordable, you may have actually been doing yourself a disservice. These tax exemptions are just another reason why private chauffeur transfers are superior to Uber, and why you should opt for our corporate car hire services over Uber.

Driver closing car door, maintaining clean vehicle.

The Benefits of Corporate Car Services

FBT Tax Exemption

When you choose Corporate Chauffeurs Gold Coast’s corporate cars service, you can be sure you’ll receive the VIP treatment. Unlike ride-sharing services like Uber, because we are a licensed transport service, our services are included in the FBT tax exemption. Furthermore, we reward customer loyalty by offering a free ride after ten corporate transfers.

A Reliable Service

With Corporate Chauffeurs Gold Coast, you don’t have to worry about the unreliability of ride-sharing apps such as a driver cancelling on you last minute or arriving late. We promise premium service that ensures you will arrive to your important meetings in style and in a timely manner. After all, the importance of first impressions should never be underestimated.

Professional, Knowledgeable Drivers

Our professional, knowledgeable and accommodating chauffeurs intimately know the traffic patterns and routes around the Gold Coast, meaning you can travel stress-free, without worrying about upsetting your clients or boss by being late.

Our courteous chauffeurs will also go out of their way to ensure your trip is comfortable and will tailor their services to create the experience you desire. For example, they will respect your need for peace and privacy if you need to go over the final details of a report. Alternatively, if you need recommendations for a restaurant to take a client to, they will be more than happy to offer their advice.

Luxury Fleet

Our exquisite fleet of luxury vehicles also ensure that you are able to make a classy and professional impression. Unlike ride-sharing services, you are able to choose a vehicle to suit the occasion. For a discrete but no less classy arrival, we can offer a sleek Holden Caprice; for a grand entrance that exudes luxury we can offer an Audi A8L.

With Corporate Chauffeurs Gold Coast, you no longer have to worry about FBT tax, surge prices, or unreliable transport. Furthermore, unlike ride-sharing services all of our drivers are thoroughly screened and have extensive driving experience and knowledge of Gold Coast traffic. With us, you can rest assured you’re in safe and reliable hands. Just sit back, relax and take in the comfort and luxury we have to offer.

Book Your Corporate Chauffeur Service Today

For an unbeatably luxurious experience that will revolutionise the way you travel, contact Corporate Chauffeurs Gold Coast today:

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