What the ruling covers
The Australian Taxation Office has issued Class Ruling CR 2026/82, addressing the fringe benefits tax (FBT) treatment of a salary packaging arrangement offered by Urban Mobility Pty Ltd. Under this arrangement, employers lease electric bikes (e-bikes) to employees through a payroll deduction arrangement involving a Deed of Novation and Lease Agreement.
Key findings
The ruling states that no car fringe benefit or property fringe benefit arises from this specific arrangement. Instead, a residual fringe benefit arises.
That residual fringe benefit is tax exempt if the employee's private use of the e-bike is limited to commuting, work-related travel, and minor occasional personal use.
If private use goes beyond those limits, the taxable value must be calculated using either an operating cost method or a cents-per-kilometre method, as described in the ruling.
Scope of the ruling
This ruling only applies to employers who use Urban Mobility's specific lease and novation arrangement. It applies to the scheme only if it is carried out exactly as described in paragraphs 12 to 19 of the ruling.
The ruling applies from 1 April 2026 to 31 March 2030.
Key actions
- Check whether the business offers or is considering an e-bike salary packaging arrangement specifically through Urban Mobility Pty Ltd, as this ruling only covers that scheme
- If using this arrangement, ensure employee private use of the e-bike stays limited to commuting and minor incidental use to keep the fringe benefit exempt from FBT
- If private use exceeds those limits, work out the taxable value using the operating cost method or cents-per-kilometre method described in the ruling
- Confirm the Deed of Novation and Lease Agreement match the scheme described in paragraphs 12 to 19, since the ruling only applies if the scheme is carried out exactly as described
- Note this ruling applies from 1 April 2026 to 31 March 2030, not before or after
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.