The ATO has released the Taxation Determination 2019/9, which outlines changes to the fringe benefits tax (FBT) car parking threshold.
The car parking threshold for the year commencing on 1 April 2019 is $8.95. This replaces the amount of $8.83 which applied to the FBT year ended 31 March 2019. The increase has been set by adjusting the previous year amount by a factor equivalent to the movement in the Consumer Price Index (1.3%).
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 their employees will be subject to FBT. These conditions include:
- A commercial car parking station is located within a one-kilometre radius of the employer-provided car park.
- The lowest fee charged by the car park operator is more than the car parking threshold.
- The car is parked for more than four hours between 7 am and 7 pm on any day.
There are circumstances where car parking benefits are exempt from FBT. These exemptions may apply to:
- Employers who meet the conditions of a small business entity.
- Institutions of certain research, education, religion and charity.
- Employees with a disability (irrespective of the type of employer).