This is where the fun starts! How low can you go? The lower the better = less FBT to pay!

Why pay more FBT than you have to?

The Average Cost Method is easily the most common valuation method for concessionally taxed car parking. It is also the Method by which employers unknowingly (as is often the case), pay far more FBT than is required.

We illustrate below the significant savings employers can achieve using examples for 10, 20, 40 and 80 spaces, and average daily rates ranging from $18 down to $10. This potential reduction in average daily rates is indicative of what is achievable. A small reduction in the daily rate makes for a large FBT saving.

Avg. Daily Rate No. of spaces FBT Payable Cumulative FBT Saving No. of Spaces FBT Payable Cumulative FBT Saving
$18 10 $39,294 20 $78,589
$14 10 $30,562 $8,732 20 $61,124 $17,464
$10 10 $21,830 $17,464 20 $43,660 $34,928
Saving per space $1,746 Saving per space $1,746
Avg. Daily Rate No. of spaces FBT Payable Cumulative FBT Saving No. of Spaces FBT Payable Cumulative FBT Saving
$18 40 $157,177 80 $314,354
$14 40 $122,249 $34,928 80 $244,498 $69,856
$10 40 $87,321 $69,856 80 $174,641 $139,713
Saving per space $1,746 Saving per space $1,746

If you’ve got a sizeable FBT bill on your car parking or just think you’re paying way too much FBT on car parking – it’s time to take a closer look at the average daily rate and make sure that you’re not paying more FBT than required by the law.