Fringe benefits tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986, what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2019?
Please note that the PDF version is the authorised version of this ruling.For information on the exemption threshold for future fringe benefits tax years, refer to Fringe benefits tax - rates and thresholds.
Relying on this ruling
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Date of effect
Commissioner of Taxation
5 June 2019
Appendix 1 - Explanation
|This Appendix is provided as information to help you understand how the Commissioner's view has been reached. It does not form part of the binding public ruling.|
3. Section 39A of the Fringe Benefits Tax Assessment Act 1986 sets out a number of conditions that must be met before car parking facilities provided by an employer to an employee will be subject to FBT.
4. Broadly, two of these conditions are that a commercial car parking station is located within a 1 kilometre radius of the employer provided car park, and that the lowest fee charged by the operator of that car park is more than the car parking threshold. Where there is more than one commercial parking station located within 1 kilometre, the condition is satisfied where the lowest fee charged by any of the operators is more than the threshold.
5. For example, if there are three commercial parking stations located within 1 kilometre of the employer provided car park, and the lowest fee charged by each of the operators on 1 April 2019 is $7.50, $8.00 and $10.00, the condition is satisfied because the lowest fee charged by one of the operators on 1 April 2019 is more than the car parking threshold.
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