iscover Government to restore FBT car parking exception
TaxCourt decisions have changed a crucial definition.
The government will revisit the definition of a “commercial parking station” to restore a previously understood application of fringe benefits tax.
FBT applies to parking provided by employers to their employees where there is alternative parking commercially available.
Assistant Treasurer Michael Sukkar said it was previously understood that car parks that effectively charge penalty rates for all‑day parking (to encourage shorter stays) would not represent genuine alternative parking arrangements for commuters, and so should not trigger FBT liabilities.
“Recent court decisions overturned this understanding, so that any alternative paid parking would trigger the liability,” he said.
“These decisions were reflected in an ATO taxation ruling due to take effect from 1 April 2022.”
He said the government would consult with stakeholders and identify modifications to the definition of “commercial parking station” with a view to restoring the previously understood interpretation, which better reflected the policy intention of the law.
This would reduce the potential FBT burden on some employers, helping them attract employees back into the workplace.
Want to see more stories from trusted news sources?Make Accountants Daily a preferred news source on Google.
