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Australia: Employer-provided parking under proposed fringe benefit tax changes

Australia: Employer-provided parking

Employers that provide car parking spaces for their staff, but do not currently pay fringe benefits tax (FBT) on this benefit, need to consider whether they would be affected by a proposed change in the Australian Taxation Office’s (ATO) interpretation of the FBT rules.


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The ATO sets out the proposed change in Draft Taxation Ruling TR 2019/D5, which is open for public consultation until 17 January 2020.

A key feature of the draft ruling is that beginning 1 April 2020, the ATO proposes to treat a car park that offers all-day parking (for at least six hours between 7am and 7pm) as a “commercial” car park for FBT purposes, even though the car park’s fee structure may discourage parking for that length of time by charging a much higher fee. Car parks adjacent to shopping centres, hospitals, and airports would be common examples.

The importance of this change is that employers with car parking facilities in the vicinity of the workplace may have to pay FBT on the taxable value of employees’ car spaces. Up to now, such parking has not been subject to FBT.

Read a November 2019 report prepared by the KPMG member firm in Australia

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