The ATO’s new ruling on Car Parking and FBT TR2021/2 has been released to reflect contemporary commercial car parking arrangements and legal developments including the Federal Court decisions in Commissioner of Taxation v Qantas Airways Ltd [2014] FCAFC 168 and Virgin Blue Airlines Pty Ltd v Commissioner of Taxation [2010] FCAFC 137.
The ruling has simplified (and broadened) the definition of what constitutes a commercial parking station for the purpose of assessing and calculating FBT liability for car parking.
Practically, car parking stations at shopping centres, hospitals, hotels and the like that were previously not considered commercial for the threshold and valuation tests, are now considered to be commercial car parking stations.
If you are unsure of your car parking FBT obligations, we suggest that you consider further sooner rather than later – the new rules commenced back on 1 April 2022 and will need to be considered in your 2023 FBT Return.
Whilst the definition of what is a commercial parking station is now easier to understand, it will create more headaches for employers. Let us be the panadol to your car parking headache and request a no obligation fee quote to do the heavy lifting for you: https://form.jotform.co/80218922354859
