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Edited version of your written advice
Authorisation Number: 1051232850906
<Date of advice: 1 June 2017
Ruling
Subject: Car Parking Fringe Benefits
Issue 1
Question 1
Is the car park a commercial parking station as defined in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986?
Answer
Yes.
Question 2
Does the current amount of $XX.XX qualify as an all-day parking rate for calculating the taxable value of car parking fringe benefits provided to the employer’s employees under section 39C of the Fringe Benefits Tax Assessment Act 1986?
Answer
Yes.
This ruling applies for the following periods:
01 April 2016 to 31 March 2023
The scheme commences on:
1 April 2016
Relevant facts and circumstances
The employer provides car parking bays to some of its employees at its office premises.
Amongst a number of car parking stations located within one kilometre of the employer’s office premises is a car park for visitors of a certain business (the visitors’ car park).
The visitors’ car park charges $XX.XX per hour. It is available to visitors to park all day (24 hours) on payment of a fee.
Relevant legislative provisions
Fringe Benefits Tax Assessment Act 1986
Question 1
Reasons for decision
The visitors’ car park is not a parking facility on a public street, road, lane, thoroughfare or footpath.
The primary purpose of the visitors’ car park is to provide parking spaces in the ordinary course of the business; it is also available for commuters or any other all-day parking.
The fact that the visitors’ car park has a primary purpose of providing parking to visitors of the business does not mean that the visitors’ car park is not available to all members of the public.
Therefore, it is considered that the visitors’ car park is a commercial parking station under subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986.
Question 2
Reasons for decision
If an employer does not elect to use a specific valuation method, the taxable value of the car parking fringe benefit must be calculated by use of the commercial parking station method.
The visitors’ car park charges $XX.XX per hour, which means for six hours of continuous parking within 7am to 7pm, its all-day parking fee would be $XX.XX.
All-day parking is defined in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986.
Therefore, amongst all commercial parking stations located within one kilometre of the employer’s office premises, should the current all-day parking fee at the visitors’ car park of $XX.XX be the lowest, it can be used as a daily rate for purpose of calculating taxable value of car parking fringe benefits provided by the employer to its employees.
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