FBT decision on parking benefits finalized



ATO has finalized its Employee Benefits Tax (FBT) ruling on parking benefits.

Tax decision TR 2021/2 sets out the Commissioner’s view on when the provision of parking is a parking benefit for the purposes of the Social Benefits Tax Assessment Act 1986. The finalized decision provides guidance clarification on when a parking facility is a “commercial car parking lot”, including objective characteristics to be considered and examples.

In light of the decision Virgin Australia Airlines Pty Ltd & Anor v FC of T 2021 ATC ¶20-793; [2021] FCA 523, the decision does not deal with the meaning of “principal place of work”. The decision will be amended to include additional guidance on this concept in due course.

TR 2021/2 applies before and after its date of issue, as long as the decision does not conflict with the views of TR 96/26 (now withdrawn) or the terms of dispute resolution agreed upon. before June 16, 2021.

Paragraph 81 of TR 96/26 expressed the view that parking facilities whose primary purpose was other than providing all-day parking were not commercial parking stations – for example, facilities that typically charge penalty rates significantly higher than the applicable rates for all-day parking. in commercial car parks open all day. This view was not retained in TR 2021/2 to reflect AAT and Qantas Federal Court decisions, and will cease to apply to parking benefits provided on or after April 1, 2022.

The decision finalizes the draft TR 2019 / D5 and replaces TR 96/26. ATO has published a compendium of comments it has received.

Source: Taxation Ruling TR 2021/2, ATO website, June 16, 2021, accessed June 16, 2021.


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