• 16.6 Taxable value - the 12-week register method

    This method differs from the typical FBT valuation method, which provides the taxable value of a single fringe benefit. You are required to keep records of each fringe benefit as it is provided during the year and then value each fringe benefit individually. However, the 12-week register method gives a total taxable value for all the fringe benefits you have elected to value by this method.

    You calculate the taxable value using the following formula:

    $A

    X

    52
    12

    X

     B 
    366

    Attention Regardless of whether or not the year is a leap year, B is always divided by 366.

    End of attention

    Where:

    A =

    the total taxable value of all car parking fringe benefits provided during the 12 weeks the register is kept. The taxable value is worked out according to whether you have chosen to use the commercial parking station method, the market value method or the average cost method, explained in sections 16.3 and 16.5.

    B =

    the number of days in the period of use of the car parking space. It begins on the first day in the FBT year on which you provide a car parking fringe benefit to an employee who is covered by the election, and ends on the last day in the FBT year on which you provide a car parking fringe benefit to that same employee.

    Example
    An employer starts providing car parking fringe benefits on 1 October 2008 and continues to do so for the rest of the FBT year. A register kept for the necessary 12-week period reveals that 250 car parking fringe benefits were provided to employees covered by the election during the time the register was maintained. Using the market value method, the employer establishes that the taxable value of each car parking fringe benefit is $10.

    For the purposes of the 12-week register method, the value of A is $2,500 (250 x $10) and the value of B is 183 days. Therefore the taxable value of the entire car parking fringe benefits provided during the FBT year to employees who are covered by the election is:

     

    $A

    X

    52
    12

    X

     B 
    366

    $2,500

    X

    52
    12

    X

    182
    366

    = $5,387.06

    Election

    If you elect to use the 12-week register method, you must hold a valid register and specify in a written election whether the election covers all employees, a particular class of employees, or specific employees.

    Valid register

    You must keep the register for a continuous period of 12 weeks. The use of car parking facilities during this period must be representative of use during the first FBT year for which the register is valid.

    Generally, a register is valid for the year in which you keep it and the four following years. However, if the period during which the register is kept begins in one FBT year and ends in the following FBT year, the register is valid only for the second year in which it is kept and the four following years.

    If the number of car parking spaces (or the number of employees allowed to park if this is less) increases by more than 10% in a year, the register is not valid for any of the years following the year in which the increase occurred.

    A register is not valid if either:

    • there is a later valid register for that FBT year covering the same employee
    • it contains an entry that is false or misleading in a material particular
    • the necessary details are not included in a register
    • entries are not made as soon as practicable.

    Details to be included in register

    You must include all of the following details in a register:

    • the date on which each car was parked
    • whether the car was parked for a total time exceeding four hours
    • whether the car travelled between the place of residence of an employee covered by the election and their primary place of employment on that day
    • the place where the car was parked.
      Last modified: 05 Jul 2012QC 17813