Important Changes to Car Parking Benefits in the time of COVID-19

Due to COVID-19, there are few important changes to car parking fringe benefits that employers must be aware of. Formally, employees who’ve worked for more than four hours received car parking fringe benefits from their employers. This was subject to the times between 7.00 am to 7.00 pm on any day at premises owned, leased or under the control of the employer.

Further, there must be a commercial car parking station within a one-kilometre radius of the employer’s premises whose all-day parking is more than the threshold (2021 FBT year is $9.15 all-day parking rate).

However, as a result of COVID-19 the following changes mean there will be no parking benefits provided if:

1. Due to COVID-19, the office and work car parks are closed or all commercial parking stations within a one-kilometre radius of the employer’s premises are closed; or
2. On 1 April 2020 (start of the 2021 FBT year), the lowest fee charged by all commercial parking stations within a one-kilometre radius Is less than the 2021 FBT all-day parking rate of $9.15.

If the reduced fee on 1^st April 2020 is substantially less than the average lowest fee charged by a commercial parking station operator in the four weeks prior or after 1 April 2020, the reduced fee is disregarded, and a car parking benefit will be provided.

As always, if you need further assistance or have any questions in regard to car parking benefits please contact your Morrows advisor.