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roommencoj(Newbie)Newbie
5 Oct 2021

Tax Ruling TR2021/2 prescribes that one of the conditions for a car parking fringe benefit to arise is that the ‘lowest representative fee’ charged by any commercial parking station for all-day parking within a one kilometre radius of the work car park exceeds the car parking threshold18 (the ‘car parking threshold requirement’). This is the same wording used in section 39A of the FBTAA 1986. However, on the ATO website under the page dealing with car parking fringe benefits (Car parking and FBT | Australian Taxation Office (ato.gov.au)) says the following: there is a commercial parking station that charges a fee for all-day parking within one kilometre of the premises on which the car is parked and the commercial parking station fee for all-day parking is more than the car parking threshold. These two statements actually mean two different things in my view? I presume that the provision in the FBTAA 1986 (and the Tax Ruling) would prevail over the webpage?

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RichATO(Community Support)Community Support
7 Oct 2021

Hi @roommencoj I'm not sure how these statements can have different meanings but happy to be provided with an example which shows that. In practice, the term "lowest representative fee" (LRF) means the lowest fee offered by a car park within the 1km radius for all day parking (ADP). ADP is defined in the ruling and FBT guidelines as 7am - 7pm. So the LRF can include 'early bird' parking rate discounts and other relevant pricing offers from the car park. It specifically excludes discounts offered for permanent long term parking. When reviewing TR2021/2 you should read it alongside Fringe benefits tax - a guide for employers. Here's a link: https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00017&PiT=[Removed by moderator]35958/

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RichATO(Community Support)Community Support
7 Oct 2021

Hi @roommencoj I'm not sure how these statements can have different meanings but happy to be provided with an example which shows that. In practice, the term "lowest representative fee" (LRF) means the lowest fee offered by a car park within the 1km radius for all day parking (ADP). ADP is defined in the ruling and FBT guidelines as 7am - 7pm. So the LRF can include 'early bird' parking rate discounts and other relevant pricing offers from the car park. It specifically excludes discounts offered for permanent long term parking. When reviewing TR2021/2 you should read it alongside Fringe benefits tax - a guide for employers. Here's a link: https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00017&PiT=[Removed by moderator]35958/

roommencoj(Newbie)Newbie
13 Oct 2021

Hi Rich Thanks for your reply. "A fee for all-day parking" does not mean the same thing as "the lowest representative fee" - surely? The first implies that early bird discounts cannot be taken into account, i.e. the fact that a fee greater than the FBT threshold exists then triggers a fringe benefit, whereas the "lowest representative fee" means that you do take early bird discounts into account as just the existence of an all-day parking fee does not automatically trigger a fringe benefit. Not sure why the wording on the website should differ from the legislation at all? At least, that's the way it appeared to me and I'd venture to say I may not be the only one. Thanks for clarifying.

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Car parking fringe benefit - website information vs Tax Ruling TR2021/2 | ATO Community