To ascertain the number of benefits, the employer is able to use any of the following three methods:
- actual method
- 12 week register method
- statutory formula method.
The statutory formula method is often used by Australian Government entities to ascertain the number of benefits and the average cost method to value car parking fringe benefits because they are easier to administer than the other methods.
Under the statutory formula method, 228 car parking fringe benefits are deemed to arise for each car parking space that is available to be used by an employee during a FBT year. This result is reduced if the number of employees is less than the number of car parking spaces available or if the car park was only available for part of the FBT year.
To determine the number of car parking fringe benefits provided under the other valuation methods, entities are required to keep records of the actual use of car parking spaces or maintain a 12 week register of the use of car parking spaces.