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Edited version of private ruling
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Ruling
Subject: Car Parking Fringe Benefit
You are an employer who currently provides car parking for your employees.
The car parking provided not been classed as a car parking fringe benefit to your employees because there has not been a commercial car parking station which has charged more than the daily parking threshold amount whilst at the same time operating within a one kilometre radius of your business premises.
After the commencement of the current FBT year on 1 April 2010 a commercial car parking facility began operations. The commercial car park charges in excess of the daily parking threshold amount and is situated within a one kilometre radius of your business premises.
You are of the view that as the commercial parking station was not operating at the commencement of the current FBT year on 1 April 2010 then the car parking benefit for the current year is FBT exempt.
Section 136 (1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) defines the following:
"car parking benefit" means a benefit referred to in section 39A
"car parking fringe benefit" means a fringe benefit that is a car parking benefit.
Section 39A(1) outlines all of the conditions that need to be satisfied to constitute the provision of a car parking benefit.
39A(1) [Provision of car parking facilities]
If the following conditions are satisfied in relation to a daylight period, or a combination of daylight periods, on a particular day:
(a) during the period or periods, a car is parked on one or more premises of a person (the "provider"), where:
(i) the premises, or each of the premises, on which the car is parked are business premises, or associated premises, of the provider; and
(ii) a commercial parking station is located within a 1 km radius of the premises, or each of the premises, on which the car is parked; and
(iii) the lowest fee charged by the operator of any such commercial parking station in the ordinary course of business to members of the public for all-day parking on the first business day of the FBT year is more than the car parking threshold;
(b) the total duration of the period or periods exceeds 4 hours;
(c) any of the following applies:
(i) a car benefit relating to the car is provided on that day to an employee or an associate of an employee in respect of the employment of the employee;
(ii) the car is owned by, or leased to, an employee or an associate of an employee at any time during the period or periods;
(iii) the car is made available to an employee or an associate of an employee at any time during the period or periods by another person, where:
(A) the other person is neither the employer of the employee nor an associate of the employer of the employee; and
(B) the other person did not make the car available under an arrangement to which the employer of the employee, or an associate of the employer of the employee, is a party;
(d) the provision of parking facilities for the car during the period or periods is in respect of the employment of the employee;
(e) on that day, the employee has a primary place of employment;
(f) during the period or periods, the car is parked at, or in the vicinity of, that primary place of employment;
(g) on that day, the car is used in connection with travel by the employee between:
i. the place of residence of the employee; and
ii. (ii) that primary place of employment;
(h) the provision of parking facilities for the car during the period or periods is not taken, under the regulations, to be excluded from this section;
(i) the day is on or after 1 July 1993;
the provision of parking facilities for the car during the period or periods is taken to constitute a benefit provided by the provider to the employee or the associate of the employee in respect of the employment of the employee.
For a car parking fringe benefit to apply all conditions under Section 39A(1) must be satisfied.
Section 39A(1)(a)(iii) of the FBTAA states:
the lowest fee charged by the operator of any such commercial parking station in the ordinary course of business to members of the public for all-day parking on the first business day of the FBT year is more than the car parking threshold.
This condition has not been satisfied as the commercial parking station commenced operations after the commencement of the current FBT year on 1 April 2010.
Accordingly the car parking benefit being supplied for the current FBT year is an exempt benefit.
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