2024/25 FBT car parking threshold announced

The ATO has recently announced the car parking threshold for 2024/25 is $10.77 (up from $10.40).

The threshold is fundamental to determining whether an employer has a car parking fringe benefit liability.

In particular, employers that provide car parking to employees need to consider whether:

• a commercial parking station is located within 1km of the employer provided parking; and
• on the first business day in the 2024/25 FBT year (which was 2 April 2024 due to 1 April being a public holiday), was the lowest fee charged for all-day parking by any such commercial car park more than the car parking threshold.

As evidenced by the recent TaxEd FBT roadshow, as a result of changes in the ATO approach to what is a commercial parking station (refer TR 2021/2) many more employers are becoming subject to FBT on car parking fringe benefits.

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