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Tax_Confucius(Newbie)Newbie
12 June 2024

Scenario: I run the finances for a small company and we are looking to offer salary sacrifice for work commuting e-bikes without incurring additional FBT. How does one do this?


From case rulings it seems an ebike can be salary sacrificed, but it only seems to apply to a novated/associate lease - is this the only way to do it? It seems a bit ridiculous to have such an elaborate scheme.

Would it not be possible for the employer to buy the bike and salary sacrifice the bike to the employe? This would be the ideal for us. Similar to what is done with PEDs where an employer takes the upfront cost recoups via salary sacrificing

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1,439 views
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Most helpful reply

CaroATO(Community Support)Community Support
17 June 2024

Hi @Tax_Confucius,


  1. If an employer is giving an employee a benefit, they'll be liable for FBT unless it falls into an exempt category. An e-bike doesn't.
  2. Are you referring to class ruling 2020/68? This one explains the connection between e-bikes and FBT.
  3. Keep in mind the basic principles of FBT. Because the employee will be using the e-bike a benefit is provided.

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Most helpful reply

CaroATO(Community Support)Community Support
17 June 2024

Hi @Tax_Confucius,


  1. If an employer is giving an employee a benefit, they'll be liable for FBT unless it falls into an exempt category. An e-bike doesn't.
  2. Are you referring to class ruling 2020/68? This one explains the connection between e-bikes and FBT.
  3. Keep in mind the basic principles of FBT. Because the employee will be using the e-bike a benefit is provided.

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Can I salary sacrifice an e-bike without a lease? | ATO Community