Certain car parking spaces are allocated to employees who commute using motorcycles – does this give rise to an FBT liability?
The Division 10A car parking fringe benefits FBT rules are predicated on the basis that a car is parked. A car is defined for FBT purposes as a motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than 1 tonne and fewer than 9 passengers.
On this basis, parking of a motor cycle on employer premises cannot give rise to a car parking fringe benefit.
However, consideration must be given to whether any other category of fringe benefit may arise.
As with many benefits not specifically dealt with it by the other categories of fringe benefits, parking of a motor cycle could potentially be a residual benefit.
However, s. 58G provides an exemption for ‘motor vehicle parking’ that would otherwise be a residual fringe benefit.
The definition of a motor vehicle is any motor powered road vehicle.
Accordingly free motorcycle parking provided to employees will not give rise to an FBT liability.
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