Car parking can be exempt or not subject to FBT for a number of reasons, including:
- There is no commercial parking station (CPS) within a 1 kilometre radius (shortest practical route) of the premises where the employer provides the car parking that charges more than the daily threshold amount as its lowest fee for a full day of parking on the first day of the FBT year – that’s a mouthful. The threshold is adjusted each year. For the FBT year ended 31 March 2017 the threshold amount is $8.66; (2017 $8.48), (2016 $8.37), (2015 $8.26), (2014 $8.03), (2013 $7.83), (2012 $7.71) & (2011 $7.46) per day.
- There is no CPS within a 1 kilometre radius. FULL STOP
- When the employee parks their car in the employer provided car parking space for a 24 hour midnight to midnight period. This is often the case where an employee is travelling.
- When the car is parked in the car parking space for less than 4 hours in total between 7am and 7pm. This could arise in respect of an employee in a sales role who is on the road most of the time or a shift worker who starts work late in the afternoon or finishes early in the morning.
- When the parking fee is provided (reimbursed) in respect of business travel. The key here is being sure that the car parking fee has been incurred whilst on business travel.
It’s important to check on your businesses particular circumstances, locations, car parking policy and reimbursement policy, to see if the above exemptions and reductions may apply. Not all organisations are subject to FBT on car parking, so this must also be considered.