Budget Outcome: FBT on Parking
While the Federal Budget provided a vast suite of measures for individuals and businesses, Parking Australia were extremely disappointed that the Treasurer did not make any significant changes to Fringe Benefits Tax (FBT) on parking. Parking Australia and other industry groups, such as the Australian Chamber of Commerce and Industry (ACCI) and the Property Council of Australia (PCA), have for months lobbied for the removal of FBT on parking.
The small change announced as part of the budget, will see an extension of the concessional FBT for businesses with a turnover of less than $10m, to now include businesses with a turnover of less than $50 million. The concession only applies to those businesses with a turnover of less than $50m that provide parking to their staff on their own premises. These premises can be either owned or leased by the business.
While on the surface this sounds like a good announcement, it will see very little change. Simply put, any business that purchases a commercial parking space valued at more than $9.15 per day, will pay FBT. This means that the ridiculous disincentive for businesses to purchase a car park for their staff, will remain in the majority of circumstances.
FBT almost doubles the price of a parking space for businesses. For example, if a business pays $15 for a parking space for their employee, they will pay an additional $14.67 to the Federal Government in FBT.
Given that many businesses will be looking at safe ways for their staff to get back to work as lockdown restrictions are eased, the lack of a decision on FBT on parking doesn’t just affect the parking industry, but all businesses large and small.