FBT Small business car parking for a company part of a consolidated group

 Author: NikkiATO(Community Moderator)Community Moderator

ATO Certified Response17 Mar 2026

Hi @Sash1112,

You’re right that the small business car parking exemption looks at the employer entity, not the wider group, when applying the $10 million gross income test.

The exemption has two alternative income tests, and you only need to meet one of them for the last income year before the relevant FBT year.

If you rely on the aggregated turnover test, that figure can include related and connected entities, depending on your structure. Overseas ownership by itself doesn’t prevent the exemption, but related entities may be relevant when working out aggregated turnover.

On commercial parking, having a commercial parking station within 1 km that charges above the threshold is relevant to whether a car parking fringe benefit exists. If a car parking fringe benefit does exist, the small business exemption may still apply, as long as the other exemption conditions are met, including that the parking is not provided in a commercial car park.

Because eligibility can depend on which income test you use and how your group is structured, we can’t confirm the outcome for your specific arrangement here. You may want to speak with a registered tax professional who can review your facts and confirm how the exemption applies in your case.

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