A car parking fringe benefit arises for each day you (as an employer) provide a car parking space for an employee to use and all conditions listed below are satisfied:
- The car is parked at or in the vicinity of the employers business premises;
- The car is used by the employee to travel to or from home;
- The car is parked for more than 4 hours between 7 am and 7 pm; and
- There is a commercial parking station that charges more than $8.48 for all day parking within a 1 kilometre radius of the premises where the car is parked.
The taxable value of the benefit is established by reference to the lowest public all day parking fee charged by a commercial parking station within a one kilometre radius of the premises where the car is parked. The lowest all day parking fee includes bona fide early bird parking.
There is an exemption for small businesses with a turnover of less the $10 million. The criteria for this exemption are as follows:
- The car is not parked at a commercial parking station;
- he employer is not a public company;
- The employer is not a government body; and
- The sum of the employer’s gross income is less that $10 million.