Here are some of the trendy things happening with car parking:
Salary Packaging and use of Employee contribution method
More employers are allowing employees to salary package a car parking space and make an after tax contribution to the provision of their car parking benefit. This works similar to motor vehicle novated lease arrangements. Savings accrue to both the employee and the employer.
Read more here: http://www.carparkingfbtrates.com.au/packaging.html
Cashing out the car parking benefit for salary and wages is certainly trendy but not necessarily popular. Cashing out can cause headaches for both the employees and the employer. From the employee perspective it can be challenging finding a cost effective long term parking solution. Whilst employers are usually motivated by reducing benefits to minimise administration, the cutting of car parking can lead to unhappy employees as they bring their car parking woes into the workplace.
The 12 week register method
The preparation of a 12 week car parking “logbook” register is often one way to reduce the FBT liability. This can be done on an employee by employee basis or more broadly. And like all FBT “logbooks”, once it’s completed, it remains valid for 5 years. This is particularly relevant for salary packaged parking and often the employee will capture the car parking use in conjunction with a car logbook.
For an easy to use, fully automated electronic logbook, take a look at our partner company LogbookMe – the easiest logbook you will ever use!