• 16.4 Taxable value - the market value method

    The taxable value of a car parking fringe benefit is the market value of the car parking you actually provide, less any amount paid by the employee towards its cost. You must obtain a valuation report from a suitably qualified valuer to substantiate the market value.

    Valuation report

    The valuation report should include at least:

    • the date of the valuation
    • the precise description of the location of the car parking facilities valued (either the street address or block and section number)
    • the number of car parking spaces valued and the value of the car parking spaces based on a daily rate
    • the full name of the valuer and a description of their qualifications as a valuer
    • the valuer's signature
    • a declaration stating that the valuer is at arm's length from the valuation.

    You must also be able to produce, when required, details of the basis on which the valuation was determined. This information may be set out in a separate valuer's report.

    Suitably qualified valuer

    A suitably qualified valuer is a person who has expertise in valuing parking facilities, through either relevant experience or attaining relevant professional qualifications. The valuer should be at arm's length from the valuation.

    Number of benefits provided

    The market value method provides the taxable value of a single car parking fringe benefit. You can obtain the exact number of benefits provided only from records of actual use.

    For this method, the FBT law does not contain a specific rule for determining the actual number of car parking fringe benefits that may arise from each car parking space, nor for determining how many car parking spaces are in a given area.


    The following guidelines describe the minimum records acceptable to the Tax Office for car parking fringe benefits valued according to the market value method.

    Basic records

    The minimum record you should keep is a declaration relating to the FBT year. If you do not keep any other records, you will be subject to FBT on the basis that a car parking fringe benefit arose on each business day of the year for all the available car parking spaces.

    There is no specific format for the declaration, but it must include all of the following details:

    • the number of car parking spaces available to be used by employees
    • the number of business days in the FBT year
    • the valuation method you have chosen to use
    • the daily value of the car parking spaces.

    Additional records

    Where the number of employees parking on the premises is always less than the number of available parking spaces, you should keep an additional declaration showing the actual number of employees who park on the premises.

    Also record the days when no car parking fringe benefits arise for a car parking space (for example, where employees are absent) or days that are not ordinary business days for your business.

    You should also keep records that show when:

    • more than one car parking benefit arises for a particular car parking space, such as with shift workers
    • you provide car parking benefits to employees outside normal business hours, for example, on weekends.
      Last modified: 18 May 2017QC 17813