Law levels playing field for e-mobility commuting

Parliament has passed a law exempting employers from paying fringe benefit tax on certain low emission commuting options they provide or subsidise for their staff.

“Many employers already subsidise the commuting costs of their staff, for instance by providing car parks,” says environment minister David Parker.

“This move supports more environmentally friendly modes of transport used to commute to and from work including public transport, bicycles, electric bikes, scooters and electric scooters.”

EVs and Beyond flagged the changes earlier.

The Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Bill (No 2) will also require digital platforms to collect and return GST on supplies of certain services, including ride-sharing, food and beverage delivery and short-stay accommodation.

“Those who sell such services through apps are often able to do so without charging GST, giving them an advantage over traditional suppliers,” Parker explains.

“Locally owned businesses competing against the large, often overseas-based digital platforms will welcome this change.

“The measures passed by Parliament will level this playing field, but without requiring sellers to register for GST.”

Parker says the newly passed legislation contains other measures that will be welcomed by business. 

“An ongoing issue for businesses, particularly smaller ones, has been the GST apportionment rules.

“They were overly complex and so imposed compliance costs,” he adds.

“The changes we’ve made will improve fairness and make the rules less onerous.”