ARTICLE · 25 FEBRUARY 2022

Car parking fringe benefits – changes to consider before 1 April 2022

Moore Australia

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TR 2021/2 is a change in the ATO view of whether a parking facility is a commercial car parking station for FBT purposes.

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The Australian Taxation Office (ATO) released a Taxation Ruling (TR) 2021/2 which considers when a parking station is considered a commercial car parking station for the purposes of Fringe Benefits Tax (FBT) provisions. The ruling represents a significant shift in the ATO's view on whether a parking facility is a commercial car parking station for FBT purposes. It is important to take note and consider these changes as they may have an impact on your business' FBT liability.

The change in view applies to car parking fringe benefits provided during FBT years commencing from 1 April 2022.

Overview of car parking fringe benefits
FBT may be payable on car parking provided to employees where there is a commercial car parking station within one kilometer of the car parking spot provided, and the all-day charge for parking exceeds the car parking threshold (currently set at $9.25). On-street parking is not considered a commercial car parking station.

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This article is issued as general commentary - please contact us about your specific circumstances.

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