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Draft Taxation Ruling TR 2019/D5

Fringe benefits tax: car parking benefits

This draft ruling sets out when the provision of car parking is a car parking benefit for the purposes of the Fringe Benefits Tax Assessment Act 1986.

Background:

This Ruling replaces Taxation Ruling TR 96/26 Fringe benefits tax: car parking fringe benefits (now withdrawn). Chapter 16 of the Fringe benefits tax – a guide for employers (Employers’ guide) provides additional guidance to help employers calculate the taxable value of a car parking fringe benefit and provides practical examples.

Ruling:

Subsection 39A (1) prescribes the conditions which must be satisfied before a benefit is a car parking benefit.

When do you provide a car parking benefit?

  1. You provide a car parking benefit on a particular day when between 7.00 am-7.00 pm:
  1. You do not have to be the employer to provide a car parking benefit as long as it is provided under an arrangement with the employer. Further, you can provide a car parking benefit in relation to a car where the use of that car is an exempt benefit.
  2.  A car that is parked at one or more work car parks on the same day, between 7.00 am-7.00 pm, may also satisfy the minimum parking period.
  3. Ordinarily, where there is no evidence that the employee and employer are dealing with each other in any other capacity, the parking is provided to the employee in respect to oftheir employment.

All-day parking available to the public on payment of a fee

  1. The term ‘public’ takes its ordinary meaning. A car park is offered to the public where car spaces are available to any member of the public. Contractual terms may restrict who may use the car park, for instance, an airport car park may be restricted to passengers and greeters of passengers. Such restrictions do not prevent the car park from being available to the public, provided any member of the public that accepts these restrictions can use the car park.

Date of effect

  1. When the final Ruling is issued, it is proposed to apply to car parking benefits provided in FBT years commencing before and after its date of issue. In any case, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 to 76 of Taxation Ruling TR 2006/10).

 

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