November 29, 2022
Workplace car parking fringe benefits tax can be one of the most dreaded tasks for businesses. It requires you to get an accurate reading of the use of your parking facilities and resources. Unfortunately, as it can be difficult to accurately monitor parking on a day-to-day basis without the appropriate technology, this often means businesses pay too much Fringe Benefits Tax. Even with a CFO on board, this can be one of the most difficult parts of running a business, as it can be hard to understand what your business owes at the end of the reporting period.
The UbiPark platform, including Agile Parking, has long helped businesses adapt to their industry, location and employee-specific parking needs. However, the interface provides more than just a platform for employers to control parking. Using the program strategically can, in fact, help you report on your parking accurately to ensure you pay the lowest legal amount possible on your fringe benefits tax.
Parking requirements for needing to pay FBT are as follows:
The car is parked at the premises
This includes if employee and employer cars are parked on premises owned by, leased by or under the control of the business owner.
The car is parked for more than 4 hours
Employee cars must be parked in allocated parking bays for more than four hours between 7 am and 7 pm on any day of the week.
The car is owned by an employee
Employee vehicles must be owned by, leased by or under the control of an employee working at the organisation. Other exceptions occur if the vehicle has been supplied by the employer.
The parking space has been provided for employment purposes
This means the parking space must be close to the employee’s work location and accessible during work hours.
The cars parked in the parking spaces are used daily
Daily use may include driving to and from work at least once each time the employee uses the parking facilities.
Commercial parking stations are located within a kilometre of the office
These commercial parking stations must charge a fee for all-day parking. The commercial parking fee must also be higher than the car parking threshold throughout the year and before the beginning of the Fringe Benefits Tax (FBT) year.
UbiPark creates an FBT report to help you identify metrics, save time in FBT calculations and save time in FBT reporting. By actively reporting on Fringe Benefits Tax costs, it also mitigates the risk that your business pays too much tax.
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