The one-kilometre distance is measured not by radius but by the shortest practicable direct route (by whatever means this route is travelled, for example, by foot, car or boat). The distance is not a straight line or “as the crow flies”, but a practicable route that can easily be accessible at all times.
Importantly the distance is not measured from the employers street address.
The distance begins at the entry point where the employer provides the car parking, and ends at the entry point to the commercial car parking station. Any route mapped, must have permanent access way and cannot be closed off after working hours or business hours.
Where an employer provides parking at multiple facilities at any one location, then it is necessary to measure from the entry point of each of those parking facilities.
It is important to remember that the measuring is generally most important on:
- The first day of the FBT year, to determine if a FBT liability exists;
- The first day of the FBT year, to determine the lowest daily rate, if using average cost method;
- The last day of the FBT year, to determine the lowest daily rate, if using average cost method;
Records must be maintained to support the measurements and assessment of whether a FBT liability exists. If a FBT liability does exist, then records must be maintained to support the measurements and assessment of the lowest daily rate at beginning and end of the FBT year.