Show download pdf controls
  • Fringe Benefits Tax Stakeholder Group key messages 2 March 2023

    Car parking and FBT

    The Chair opened the meeting with an acknowledgement of country.

    This extraordinary meeting was called to discuss the car parking and fringe benefits tax (FBT) program of work submission.

    Multiple issues and ATO responses were discussed, including:

    • Is the car park provided in respect of employment?

    If there is no preferential treatment for employees compared to members of the public when accessing a car park, the car parking benefit is not provided in respect of employment.

    Further guidance to be considered in the update to Chapter 16 of the FBT – a guide for employers.

    • What is a commercial parking station?

    Taxation Ruling TR 2021/2 Fringe Benefits Tax: car parking benefits provides the ATO view.

    • Identification of a commercial car parking facility where there is an ability to exit and re-enter.

    The lowest fee charged (in the ordinary course of business to members of the public for all-day parking) not the actual fee charged must be determined.

    Chapter 16 of the FBT – a guide for employers is being updated and will include a relevant example.

    • Employers with multiple branches.

    The ATO view is contained in TR 2021/2.

    • Prescribed rate parking and what is considered commercial when there are rebates?

    TR 2021/2 lists hallmark characteristics which are an objective test to determine whether a car park is a commercial parking facility. Visibility is not required regarding how parking rates are determined by the car parking operator.

    • Market valuation approach/safe harbour.

    There are several different fact patterns that can arise which make the boundaries of a safe harbour difficult to establish, and therefore is not a viable option.

    Members’ feedback was noted.

    • The definition of 'members of the public' in relation to special purpose car parking.

    A view is yet to be finalised.

    It is anticipated that Chapter 16 of the FBT – a guide for employers will include the finalised view.

    Action item

    Update Chapter 16 of FBT – a guide for employers.

    Due date

    April 2023



    Action item details

    Address the car parking issues identified and provide relevant guidance in the Guide.

    Action item

    Communication activities

    Due date

    June 2023



    Action item details

    Consider further communication activities, to suitably inform employers and their tax advisors of the updated view in TR 2021/2 and the corresponding updates to the FBT – a guide for employers.

      Last modified: 11 Apr 2023QC 72085