FBT on car parking?

Business Managers may have seen the recent coverage around changes to the ATO view’s in relation to FBT on car parking outside the CBDs of major capital cities.

In simple terms, the ATO has decided to withdraw a 1996 Income Tax Ruling and is proposing a new ruling which would treat a car park at shopping centres, hospitals and airports as “commercial” facilities for FBT purposes.  This dramatically increases the areas where a commercial car park would fall within a 1km radius of an employer’s premises.  This change of view is proposed to come into effect from 1 April 2020 and is gaining considerable attention due to the potential cost implications for employers, see, e.g., here.

The good news for Christian schools is that as “a registered charity” section 58G(2) of the Fringe Benefits Tax Assessment Act 1986 determines that such benefits are exempt from fringe benefits tax.

Any school not registered as a charity will need to seek appropriate professional advice.