Taxation Laws Amendment (FBT Cost of Compliance) Act 1995 (145 of 1995)

Schedule 2   CAR PARKING

Part 1   AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

Division 2   Valuation of car parking benefits

4   After section 39D

Insert:

Taxable value of car parking fringe benefits-average cost method

Election

"39DA.(1) An employer may elect that this section applies to any or

all of the employer's car parking fringe benefits for a particular FBT

year.

Taxable value

"(2) Subject to this Part, if an election covers a car parking fringe

benefit, the taxable value of the fringe benefit is the average cost

worked out under subsection (3) reduced by the recipients contribution.

Method of working out average cost

"(3) The average cost is:

A + B

2

where:

A is the lowest fee charged in the ordinary course of business to

members of the public for all-day parking by any operator of a

commercial parking station located within a 1 km radius of any of the

relevant parking premises on the day on which a car parking benefit is

first provided in that FBT year in relation to the employer in

connection with any of those premises.

B is the lowest fee charged in the ordinary course of business to

members of the public for all-day parking by any operator of a

commercial parking station located within a 1 km radius of any of the

relevant parking premises on the day on which a car parking benefit is

last provided in that FBT year in relation to the employer in

connection with any of those premises.

relevant parking premises means the premises referred to in paragraph

39A(a).

Fees must be representative

"(4) An election is of no effect if the fees referred to in

subsection (3) are not representative (see section 39AB).".