The Australian Taxation Office has announced that its plans to update the rules surrounding car parking arrangements and fringe benefits tax have been deferred until next year. Originally planned to start from 1 April 2020, the changes mean that a car park that allows all-day parking but charges high fees to discourage such parking would still be considered a commercial parking station for Fringe Benefits Tax (FBT) purposes. The Australian Taxation Office has recognised that employers will require time to implement these changes, and therefore has delayed the implementation of these rules to 1 April 2021.
Examples of current fringe benefits include:
- allowing an employee to use a work car for private purposes
- giving an employee a discounted loan
- paying an employee’s gym membership
- providing entertainment by way of free tickets to concerts
- reimbursing an expense incurred by an employee, such as school fees
- giving benefits under a salary sacrifice arrangement with an employee.
For more information about FBT and your obligations as an employer, click here.