Draft Taxation Determination
TD 93/D96
Fringe benefits tax: what is a 'commercial parking station' for the purposes of sections 39A, 39B, 39C and 39E of the Fringe Benefits Tax Assessment Act 1986 (the FBTAA)?
-
Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 93/107.
FOI status:
draft only - for commentPreamble
| Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO. |
1. Sections 39A, 39B, 39C and 39E of the FBTAA (inserted by the Taxation Laws Amendment (Car Parking) Act 1992) refer to car parking provided to employees or associates which is within a 1km radius of a commercial parking station.
2. A "commercial parking station" is defined in subsection 136(1) to be:
"a permanent commercial car parking facility where any or all of the car parking spaces are available in the ordinary course of business to members of the public for all-day parking on payment of a fee".
For the purpose of this definition, the words "permanent" and "commercial" have their ordinary dictionary meanings.
3. Some car parking facilities (such as parking provided to short term shoppers, and parking provided for guests at a hotel) have a primary purpose other than the provision of all day parking. A feature of these arrangements is that, whilst all day parking is available in these car parks, the operators of the car park discourage it by charging penalty rates which are significantly higher than the rates that would be charged at other commercial all-day parking facilities. A facility of this sort which charges penalty rates for all day parking would not be treated as a "commercial car parking station".
4. A car park which is not run with a view to making a profit (usually reflected in significantly lower car parking rates charged compared with the normal market value for that facility) would not be considered to be commercial. A parking facility will not be commercial where a nominal fee is intended to merely cover expenses associated with the facility.
5. A car park set up for a short period to cater for a special function (like an Easter show) would not be considered to be permanent.
6. A vacant lot which is utilized as a car park could be considered to be a permanent commercial car park even where it is intended that a building will be erected on the site in due course.
Commissioner of Taxation
29 April 1993