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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051182041539

Date of advice: 19 January 2017

Ruling

Subject: Parking expenses

Question

Are you entitled to a deduction for monthly parking fees you incur to park your employer provided car near your home?

Answer

No

This ruling applies for the following periods:

Year ended 30 June 201Y

The scheme commences on:

1 July 201X

Relevant facts and circumstances

You are an employee of a company.

Your employer provides you a fully maintained car for your exclusive use as you are required to visit clients and carry work related promotional products to show your prospective customers.

You are able to use the car for private use.

You live a long distance from your work place.

Your employer does not require you to attend the office on a daily basis.

You carry out some of your work duties from your home.

You park your car in a secure parking area which is about 10 minutes from your home.

The car park is behind a full height sliding gate and requires a security code for access.

The car park is under cover and has security cameras.

Relevant legislative provisions

Income Tax Assessment Act 1936 Section 51AF

Reasons for decision

Section 51AF of the Income Tax Assessment Act 1936 specifically denies any deductions for expenses relating to a car which is provided by an employer to an employee for his or her exclusive use and the employee is entitled to use it for private use.

Section 51AF of the ITAA 1936 states:

Car has the meaning under Section 995-1 of the Income tax Assessment Act 1997 and states:

Car expenses has the meaning under section 28-13 of the ITAA 1997 and it states:

In your case, your employer provides you with the use of a car to carry out your work commitments and for personal use.

You incur parking fees to safely park your car close to your home.

Section 51AF of the ITAA 1936 specifically denies you a deduction for the car parking fees as set out above.

You are not entitled to claim the monthly parking fees as a deduction.


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