ATO ID 2013/34: Exempt Car Benefits: work related travel
Date of decision: 11 June 2013
Year of income: Year ending 31 March 2014
Business line: Superannuation and Employer Obligations

Issue
Is travel by an employee in their employer's car, between their place of residence and the employee's place of employment in relation to a second employer, 'work-related travel' for the purposes of paragraph (a) of the definition in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Decision
No. An employee's place of employment for the purposes of paragraph (a) of the definition of 'work-related travel' in subsection 136(1) of the FBTAA relates only to the employment relationship under which the car benefit is provided. Therefore, travel by an employee in their employer's car, between their place of residence and the employee's place of employment in relation to a second employer, is not 'work-related travel' for the purposes of paragraph (a) of the definition.

Facts
All legislative references are to the FBTAA. The employee is a current employee of Company A and Company B. The companies are unrelated. During the FBT year, a car benefit (within the meaning of subsection 7(1)) is provided to the employee in respect of their employment with Company A. The relevant car is a utility truck designed to carry a load of less than one tonne. The employee uses the utility truck to travel between their place of residence and their place of employment in relation to Company B. This travel is private use of the utility truck by the employee.

Reasons for decision
Summary: Car benefits provided in relation to the types of cars listed in paragraph 8(2)(a), such as utility trucks designed to carry a load of less than one tonne, are exempt benefits if there is no private use of the car during the income year other than the types of private use listed in paragraph 8(2)(b). Paragraph 8(2)(b) requires that there be no private use of the car when the benefit was provided other than: The term 'work-related travel' is defined in subsection 136(1) as follows: work-related travel , in relation to an employee, means: (a) travel by the employee between: (i) the place of residence of the employee; and (ii) the place of employment of the employee or any other place from which or at which the employee performs duties of his or her employment; or It is a fundamental rule of statutory interpretation that the words of a provision must be read in their context (see for example, K & S Lake City Freighters Pty Ltd v. Gordon & Gotch Ltd (1985) 157 CLR 309). Read in isolation, the words 'place of employment of the employee' or 'place from which or at which the employee performs duties of his or her employment' might be interpreted as referring to any place of employment of an employee. However, the introductory words to subsection 8(2) include a contextual reference to the car benefit being provided 'in respect of the employment of a current employee'. Therefore, it is in the context of this employment relationship that paragraph (a) of the definition of 'work-related travel' must be read. In this context, 'place of employment of the employee' and 'place from which or at which the employee performs duties of his or her employment' relate only to the employment relationship under which the car benefit is provided. Accordingly, travel between the employee's place of residence and place of employment in relation to Company B in the utility truck provided by Company A is not 'work-related travel' for the purposes of paragraph (a) of the definition in subsection 136(1).

Legislative references: Fringe Benefits Tax Assessment Act 1986 subsection 7(1) subsection 8(2) paragraph 8(2)(a) paragraph 8(2)(b) subsection 136(1)
Case references: K & S Lake City Freighters Pty Ltd v. Gordon & Gotch Ltd (1985) 157 CLR 309
Related ATO interpretative decisions: ATO ID 2012/96 | ATO ID 2012/97 | ATO ID 2012/98
Subject references: Fringe benefits tax Exempt car benefits Car fringe benefits FBT exempt private use FBT home to work travel FBT work-related travel