Taxation Determination

TD 93/71

Fringe benefits tax: how is the 1km distance between a commercial car parking station and the premises on which an employee's car is parked to be measured for the purposes of section 39B of the Fringe Benefits Tax Assessment Act 1986 (the FBTAA)?

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FOI status:

may be releasedFOI number: I 1214724

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. Section 39B of the FBTAA which was inserted by the Taxation Laws Amendment (Car Parking) Act 1992 (the amending Act), specifies that:

"...a commercial car parking station is taken to be located within a 1km radius of particular premises if....a car entrance to the commercial parking station is situated less than 1km, by the shortest practicable route from a car entrance to those premises."

2. The explanatory memorandum which accompanied the amending Act explains that this route can be travelled by foot, car, train, boat, etc., whichever produces the shortest practicable route.

3. Where the shortest route can be travelled on foot, it is expected that public thoroughfares such as arcades through shopping centres will be utilised in determining the distance. However, illegal or impracticable shortcuts through, for example, private property, would not be considered to be part of a "practicable route".

4. Whilst the basis of measurement of the distance of journeys or portions of journeys is left to be determined by the individual employer, distances travelled can be determined using measuring devices attached to vehicles, by information available from a public transport authority or by measurement on a scale map.

Commissioner of Taxation
22 April 1993

References

ATO references:
NO 93/559-0

ISSN 1038 - 8982

Subject References:
fringe benefits
car parking
distance
measurement

Legislative References:
FBTAA 39B

TD 93/71 history
  Date: Version: Change:
You are here 22 April 1993 Original ruling  
  27 November 1996 Withdrawn  

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