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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:
Where:
(a) during a particular period, an employer provides a car for the exclusive use of a person who is, or of persons any of whom is, an employee of the employer or a relative of such an employee; and
(b) at any time during that period, the employee or a relative of the employee is entitled to use the car for private purposes;
a deduction is not allowable under this Act in respect of a car expense that relates to the car and:
(c) is incurred by the employee during that period; or
(d) is incurred by the employee and is wholly or partly attributable to that period.
Car has the meaning under Section 995-1 of the Income tax Assessment Act 1997 and states:
Car means a motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than 1 tonne and fewer than 9 passengers.
Motor vehicle means any motor-powered road vehicle (including a 4 wheel drive vehicle).
Car expenses has the meaning under section 28-13 of the ITAA 1997 and it states:
28-13(1) A car expense is a loss or outgoing to do with a car.
28-13(2) In addition, any of the following is a car expense:
(a) a loss or outgoing to do with operating a car;
(b) the decline in value of a car.
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.