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FBT Q&A – Car parking fringe benefit arise where the vehicle is not a car

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Question

If a parking space on employer premises is being utilised by a vehicle that is not classified as a car, am I correct this will not attract a car parking fringe benefit even if the user of this vehicle was entitled to private and commuter use of the vehicle.

Answer

Your understanding is correct.

Section 39A of the FBT Act sets out the conditions which must be satisfied before the provision of car parking facilities will be taken to constitute a benefit provided by the provider to the employee (or associate) in respect of the employment of the employee. All of the conditions must apply before the benefit will be caught under this section.

One of those conditions is that:

the car is owned or leased by the employee or an associate of the employee, or is provided by the employer or any other person

If, in your case, the vehicle is not a ‘car’ as defined, then no car parking fringe benefit will occur and section 58G of the FBT Act should provide an exemption from FBT.

Disclaimer: This article is based upon information available as at the time of publishing and may be subject to change.