Taxation Determination

TD 2004/16

Fringe benefits tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986 what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2004?

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FOI status:

may be released

1. The car parking threshold for the fringe benefits tax (FBT) year commencing on 1 April 2004 is $6.28. This replaces the amount of $6.16 that applied in the previous year.

2. The car parking threshold set in this Determination has been ascertained by adjusting the previous year amount ($6.16) by a factor equivalent to the movement in the All Groups Consumer Price Index (2.0 per cent).

3. Section 39A of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) sets out a number of conditions that must be met before car parking facilities provided by an employer to an employee will be subject to FBT.

4. Two of these conditions are, that a commercial car parking station located within 1 kilometre of the employer provided car park, and the lowest fee charged by the operator is more than the car parking threshold. Where there is more than one commercial parking station located within 1 kilometre, the condition is satisfied where the lowest fee charged by any of the operators is more than the threshold.

5. For example, if there are 3 commercial parking stations located within 1 kilometre of the employer provided car park and the lowest fee charged by each of the operators on 1 April 2004 is $5.50, $6.00 and $7.00, the condition is satisfied because the lowest fee charged by one of the operators on 1 April 2004 is more than the car parking threshold.

Date of effect

6. This Determination applies to the FBT year commencing on 1 April 2004.

Commissioner of Taxation
19 May 2004

Not previously released in draft form.

References

ATO references:
NO 2003/005386

Previous Rulings/Determinations:
TD 96/23;
TD 97/17;
TD 98/8;
TD 1999/28;
TD 2000/26;
TD 2001/11;
TD 2002/14;
TD 2003/14.

Related Rulings/Determinations:

TR 92/20
TR 96/26

Subject References:
car parking benefits
car parking fringe benefits
car parking threshold
FBT
FBT commercial parking station
FBT motor vehicle parking
fringe benefits tax

Legislative References:
FBTAA 1986 39A
TAA 1953 Pt IVAAA