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  • Car parking fringe benefits

    A car parking fringe benefit will generally arise if an employer provides car parking to an employee and all the following conditions are satisfied:

    • the car is parked at premises owned or leased by, or otherwise under the control of, the provider (usually the employer)
    • the car is parked for a total of more than four hours between 7am and 7pm on any day of the week
    • the car is owned by, leased to, or otherwise under the control of, an employee, or is provided by the employer
    • the parking is provided in respect of the employee's employment
    • the car is parked at or near the employee's primary place of employment on that day
    • the car is used by the employee to travel between home and work (or work and home) at least once on that day
    • there is a commercial parking station that charges a fee for all-day parking within one kilometre of the premises on which the car is parked and    
      • the commercial parking station fee for all-day parking is more than the car parking threshold, and
      • at the beginning of the fringe benefits tax (FBT) year, the commercial parking station fee for all-day parking was more than the car parking threshold.

    The current car parking threshold can be found at Fringe benefits tax - rates and thresholds.

    Car parking is exempt from FBT where an employer provides parking to an employee and not all of the above conditions are satisfied – for example, if car parking is provided for less than a total of four hours between 7am and 7pm.

    Small business and other car parking exemptions

    Car parking benefits are exempt from FBT where the benefits are provided:

    • by employers who meet the conditions of the small business car parking benefits exemption
    • by certain research, education, religious and charitable institutions
    • for employees with a disability (irrespective of the type of employer).

    The small business car parking benefits exemption applies if all the following conditions are satisfied:

    • the parking is not provided in a commercial car park
    • the employer is not a government body, a listed public company, or a subsidiary of a listed public company
    • for the last income year before the relevant FBT year, either the employer's
      • gross total income was less than $10 million
      • turnover was less than $10 million (less than $50 million for benefits provided on or after 1 April 2021).

    See also:

    Last modified: 07 May 2021QC 43855