Ordinarily, employers provide car parking fringe benefits to their employees if they provide parking to their employees in respect of their employment for more than four hours between the hours of 7.00am and 7.00pm on any day at premises owned or leased or under the control of the employer.
Additionally, there must be a commercial car parking station whose all-day parking fee is more than the car parking threshold ($9.15 all-day parking rate in the 2021 FBT year), within a one-kilometre radius of the employer’s premises.
Now, because of COVID-19, there will be no car parking fringe benefits provided if:
If the reduced fee at 1 April 2020 is substantially less than the average of the lowest fee charged by a commercial parking station operator in the four weeks prior to 1 April 2020 or the four weeks after 1 April 2020, the reduced fee will be disregarded, and a car parking fringe benefit will be provided.
If you have any other FBT related queries, including whether other COVID-19 concessions may be available, please speak to your adviser or get in contact with the Crowe Tax Advisory team.