Call Us +1-555-555-555

Changes to FBT on car parking

23 March 2023

Taxation Ruling TR2021/2 Fringe Benefits tax: car parking benefits was updated to provide that from 1 April 2022 car parking facilities that charge penalty rates higher than commercial rates are now considered to be commercial parking stations for FBT purposes.

 

The change is significant because historically employers have been able to exclude car parking benefits from FBT where the only car parking facilities within a one-kilometre radius of a work car park were special purpose car parks i.e they offered a low or free rate, then a penalty rate to discourage all day parking (such as suburban shopping centres, universities, or hospitals). However, these car parks are no longer excluded from the definition of a commercial parking station and now must be considered for the purposes of assessing and calculating FBT.


The car parking threshold for the FBT year ending 31 March 2023 is $9.72


Small businesses are exempt from paying FBT on car parking benefits if all the following conditions are met:

  • The parking is not provided in a commercial car park.
  • For the last income year ending before the start of the relevant FBT year, the business’s gross total income was less than $10 million or aggregated turnover was less than $50 million.


Please speak with us if you have any queries on FBT so that we can assist you in determining if you have any liability.

Latest News

17 January 2025
Navigating Inheritances. Nicholes Family Law Partners Nadine Udorovic and Bec Dahl chat to Danny Archer and Damian McMahon. Together, they delve into the complexities of inheritances, offering valuable insights from both legal and financial perspectives on how to navigate this important topic.
18 December 2024
Watch the video above from Thayne. As 2024 comes to a close I thought I'd take the opportunity and send a thank you note to you all as gratitude for your continued support and loyalty. Throughout 2024 we have experienced; 1. Exceptional investment returns from all asset classes and sectors: ASX 200 up 23% S&P 500 up 30% AUST. Bonds up ~4.5% INTERNATIONAL Bonds up ~6% Aust Retail Property Trust up 39% 2. This hopefully reminds you all that it's best to remain invested even when economic conditions are uncertain. 3. We are actively monitoring and keeping an eye on US economic data particularly to understand which direction inflation may head, how this will impact interest rates and currency valuations, will there be a resurgence of small companies, emerging markets and bond and property prices. 4. With our research team we are well positioned to keep on top of the ever changing landscape, making investment decisions to maximise returns and minimise risk with regular investment committee meetings and analysis of data. 5. For many of our actively managed investment portfolios we ranked in the top 5 if not top 10 of throughout the course of the year which is a testament to the structure of Mulcahy & Co offices, people, systems and processes that we continue to build on to provide a quality service and outcomes to you all. 6. Please remember here at Mulcahy & Co the Financial Planning team is a part of a bigger network incorporating Accounting, Lending and Legal to deliver Financial Security 360 to make sure all of your financial needs are met and complement each other to achieve your goals and objectives. Once again I'd like to thank you for your support and wish you and your families a Merry Christmas and happy new year. The Mulcahy & Co Financial Planning Team
1 November 2024
We meet Accounting Partner Eamon and Mark from Compass Business Accountants who has joined the Mulcahy & Co Group operating from our Toowoomba, Queensland office. Host Gavin Nash talks to the pair who are operating from this thriving inland city and what services they offer their clients.
Show More
Share by: