Taxation Laws Amendment (Car Parking) Act 1992 (237 of 1992)

PART 2   AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

Division 2   Amendments relating to car parking

4.   After section 39 of the Principal Act the following Division is inserted:

"Division 10A-Car Parking Fringe Benefits

"Subdivision A-Car Parking Benefits

Car parking benefits

"39A. If the following conditions are satisfied in relation to a daylight period, or a combination of daylight periods, on a particular day:

(a) during the period or periods, a car is parked on one or more premises of a person (the 'provider'), where:

(i) the premises, or each of the premises, on which the car is parked are business premises, or associated premises, of the provider; and

(ii) a commercial parking station is located within a 1 km radius of the premises, or each of the premises, on which the car is parked;

(b) the total duration of the period or periods exceeds 4 hours;

(c) any of the following applies:

(i) a car benefit relating to the car is provided on that day to an employee or an associate of an employee in respect of the employment of the employee;

(ii) the car is owned by, or leased to, an employee or an associate of an employee at any time during the period or periods;

(iii) the car is made available to an employee or an associate of an employee at any time during the period or periods by another person, where:

(A) the other person is neither the employer of the employee nor an associate of the employer of the employee; and

(B) the other person did not make the car available under an arrangement to which the employer of the employee, or an associate of the employer of the employee, is a party;

(d) the provision of parking facilities for the car during the period or periods is in respect of the employment of the employee;

(e) on that day, the employee has a primary place of employment;

(f) during the period or periods, the car is parked at, or in the vicinity of, that primary place of employment;

(g) on that day, the car is used in connection with travel by the employee between:

(i) the place of residence of the employee; and

(ii) that primary place of employment;

(h) the provision of parking facilities for the car during the period or periods is not taken, under the regulations, to be excluded from this section;

(i) the day is on or after 1 July 1993; the provision of parking facilities for the car during the period or periods is taken to constitute a benefit provided by the provider to the employee or the associate of the employee in respect of the employment of the employee.

When commercial parking stations are located within a 1 km radius of business premises or associated premises

"39B. For the purposes of this Division, a commercial parking station is taken to be located within a 1 km radius of particular business premises or particular associated premises if, and only if, a car entrance to the commercial parking station is situated less than 1 km, by the shortest practicable route, from a car entrance to those premises.

"Subdivision B-Taxable Value of Car Parking Fringe Benefits

Taxable value of car parking fringe benefits-"commercial parking station" method

"39C. Subject to this Part, the taxable value, in relation to a year of tax, of a car parking fringe benefit provided on a day in the year of tax in connection with one or more premises is equal to:

(a) if, on that day, there is only one commercial parking station located within a 1 km radius of any of those premises-the lowest fee charged by the operator of the parking station in the ordinary course of business to members of the public for all-day parking on that day; or

(b) if, on that day, there are 2 or more commercial parking stations located within a 1 km radius of any of those premises-the lowest fee charged by any of the operators of those parking stations in the ordinary course of business to members of the public for all-day parking on that day; reduced by the amount of the recipients contribution.

Taxable value of car parking fringe benefits-"market value" basis (Employer

may choose market value basis)

"39D.(1) An employer may elect that this section apply in relation to any or all of the car parking fringe benefits in relation to the employer in relation to a particular year of tax.

(Market value basis of working out taxable value)

(2) Subject to this Part, if an election is made under subsection (1) in relation to a car parking fringe benefit provided on a day in a year of tax, the taxable value, in relation to the year of tax, of the fringe benefit is:

(a) the amount that the recipient could reasonably be expected to have been required to pay the provider in respect of the provision of the benefit if it were assumed that the provider and the recipient were dealing with each other at arm's length; reduced by:

(b) the amount of the recipients contribution.

(Valuer's report must be given to employer)

"(3) An election purporting to be made under subsection (1) in relation to one or more car parking fringe benefits is of no effect unless:

(a) a suitably qualified valuer gives to the employer, before the

declaration date, a report, in a form approved by the Commissioner, about the valuation of the fringe benefits; and

(b) the valuer is at arm's length in relation to the valuation; and

(c) the return of the employer of the year of tax, in so far as it relates to the taxable values of the fringe benefits, is based on the report.

Fees charged by commercial parking stations for all-day parking (Daily rate equivalent for periodic parking arrangements)

"39E.(1) For the purposes of this Subdivision, if the operator of a commercial parking station provides all-day parking in the ordinary course of business to members of the public on a weekly, monthly, yearly or other periodic basis, the operator is taken to charge a fee for all-day parking on a particular day during the period equal to the amount worked out using the formula:

((Total fee) / (Business days in period))

where:

'Total fee' is the total fee charged by the operator in respect of all-day

parking on days in that period;

'Business days in period' means the number of business days in that period.

(Anti-avoidance)

"(2) If either or both of the following apply:

(a) a transaction between the operator of a commercial parking station and a customer is not at arm's length;

(b) the operator of a commercial parking station sets the level of a fee for the sole or dominant purpose of enabling one or more employers to obtain reductions in the taxable values of car parking fringe benefits; then, for the purposes of this Subdivision:

(c) if only paragraph (a) applies-it is to be assumed that the fee is the fee that would have been payable if the operator and the customer had been dealing with each other at arm's length in relation to the transaction; and

(d) if only paragraph (b) applies-it is to be assumed that the fee is the fee that would have been payable if it had been set without that purpose in mind; and

(e) if both paragraphs (a) and (b) apply-it is to be assumed that the fee is the fee that would have been payable if:

(i) the operator and the customer had been dealing with each other at arm's length in relation to the transaction; and

(ii) it had been set without that purpose in mind.".