Is a “Pay & Display” parking facility a FBT exposure?

Question

There is a vacant block area near our office where parking is paid for by obtaining a voucher and displaying the voucher on the car dashboard where it is visible.

It is not on-street parking – i.e. parking on a street, road, lane, thoroughfare or footpath (or similar).

Is this car parking station a commercial parking station that may impact whether FBT is payable on car parking provided to employees?

Answer

A commercial parking station, in relation to a particular day, is defined under subsection 136(1) of the FBTAA as:

“…a permanent commercial car parking facility where any or all of the car parking spaces are available in the ordinary course of business to members of the public for all-day parking on that day on payment of a fee, but does not include a parking facility on a public street, road, lane, thoroughfare or footpath paid for by inserting money in a meter or by obtaining a voucher.”

A car park is a ‘commercial parking station’ when it meets all of the following for a particular day — the car park:
1. is permanent;
2. is a commercial car parking facility;
3. makes all-day parking available to the public on payment of a fee;
4. is not on-street parking;
5. does this in the ordinary course of business.

It is therefore possible that the facility you describe, not being on-street parking, can qualify as a commercial parking station where all the other criteria are met.

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