12 June 2015 – Bicycling Western Australia provided a submission to the 2015 Tax White Paper. The submission has suggested four proposals including a Ride to Work tax incentive, tax-free mileage allowance with the aim of getting more people cycling to work.
12 June 2015 Bicycling Western Australia, along with eight other cycling organisastion from around Australia has provided a submission to the 2015 Tax White Paper \’ Better tax system, better Australia\’.
The submission has suggested four proposals including a Ride to Work tax incentive, tax-free mileage allowance with the aim of getting more people cycling to work. The economic benefits of the following proposals provides significant societal improvements with minimal or no direct taxation revenue impact.
1. RIDE TO WORK TAX INCENTIVE
The scheme allows an employee to salary sacrifice the cost of a bicycle and safety equipment, such as a helmet and lights, up to a capped value of $1,500 without incurring a taxable benefit. The employer receives a tax incentive to purchase a bike for use by their employees who may enter into an agreement to use the bike, paying the cost back through a fixed term salary sacrifice arrangement.
2. ACCELERATED DEPRECITATION FOR END OF TRIP FACILITIES
The proposal is for a tax incentive to allow the accelerated depreciation of investments in expanding, improving or retro-fitting bicycle parking, shower and change facilities and other specific infrastructure that supports increased travel to work by active modes – walking and cycling.
3. TAX-FREE MILEAGE ALLOWANCE
A tax concession provides employers with a tax refund for every kilometre an employee rides to work. The employer pays the worker a tax-free fixed allowance to commute to work by bike. The amount paid in Belgium as an example is 0.21 Euro per kilometre with a total daily allowance of 15km.
4. TAX-FREE MEMBERSHIP OF BICYCLE ORGANISATIONS
A tax benefit is provided for the annual cost of membership of the state bicycle organisation provided it includes a personal accident and third party insurance cover.
You can download a copy of the full submission HERE>>
WHERE TO FROM HERE?
Proposals from the submissions lodged will be considered for inclusion in the Commonwealth’s ‘Green Paper’. The Green Paper is the government’s official ‘discussion paper’ based on decisions made by the Tax White Paper Task Force on what proposals are actually supported for consideration from all the submissions received. This then leads to another round of more targeted national consultations and another opportunity for the cycling sector to lobby for its proposals.
You can view all the submissions to the 2015 Tax White Paper HERE>>