The New Car Parking Ruling
With key changes coming into force in the 2023 FBT year, TR 2021/2, sets out the Commissioner’s view on when the provision of car parking is a car parking benefit for the purposes of the Fringe Benefits Tax Assessment Act 1986. The ruling expands on previously defined definitions of commercial parking stations. The changes will result in many more employers being subject to fringe benefits tax (FBT) on the provision of car parking to employees from 1 April 2022.
The ATO has expanded on its view that certain paid car parks (such as shopping centres and other car parks with similar arrangements) that were previously excluded as commercial parking stations in TR 96/26, may now be captured as “commercial car parking facilities”.
Going forward, all car parks that charge a fee for all day parking above the car parking threshold even if it has a primary purpose other than providing all-day parking (e.g. special purpose or penalty style products). This applies even if its fee structure discourages all-day parking through higher fees. This replaces the ATO’s previous longstanding view in ruling TR 96/26 (which was superseded in November 2019).
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