ATO ID 2014/12: Car Parking Fringe Benefits: all-day parking
Date of decision: 27 February 2014
Year of income: Year ended 31 March 2013
Business line: Private Groups and High Wealth Individuals

Issue
Is a fee charged by the operator of a commercial parking station for vehicles entering the station from 1.00 p.m. a fee charged for 'all-day parking' as defined in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Decision
No. A fee charged by the operator of the commercial parking station for vehicles entering the station from 1 p.m. is not a fee for 'all-day parking' as defined in subsection 136(1) of the FBTAA. After 1 p.m. it is impossible to park for a continuous period of six hours or more during a 'daylight period' on that day. Under the definition in subsection 136(1) a 'daylight period' ends before 7.00 p.m. on that same day.

Facts
An employee parks his car in a car parking space located on the employer's business premises. The car parking space used by the employee is located within one kilometre of a commercial parking station as defined in subsection 136(1) of the FBTAA. The parking station operates between 6:30 a.m. and 10.00 p.m. The operator of the parking station charges different fees for vehicles that enter before 1 p.m. and those that enter from 1 p.m.

Reasons for decision
Summary: All legislative references are to the FBTAA. Subsection 39A(1) sets out the criteria that must be met for a car parking benefit to arise. Subparagraph 39A(1)(a)(ii) requires a commercial parking station to be located within a 1 km radius of the premises on which the car is parked. Subparagraph 39A(1)(a)(iii) contains the following requirement: 'All-day parking' is defined in subsection 136(1) to mean, in relation to a particular day: ... parking of a single car for a continuous period of 6 hours or more during a daylight period on that day. 'Daylight period' is defined in subsection 136(1) to mean, in relation to a day: so much of a period on that day as occurs: (a) after 7 a.m. on that day; and (b) before 7 p.m. on that day. The application of these definitions was considered by the Administrative Appeals Tribunal in Case 27/95 95 ATC 275; AAT Case 10 , 128 (1995) 30 ATR 1297. The Tribunal considered a submission that the lowest fee charged for all-day parking would be 10 cents where that was the charge for a car parked for a period of at least six hours from just before 6.00 p.m. Senior Member Fayle said at ATC 278: 16. ... All-day parking, as mentioned, is a continuous period of at least 6 hours during a daylight period on that day. 'Daylight period' is defined above as being a twelve hour period from 7.00 a.m. to 7.00 p.m., a definition, it is observed, which conforms with the lexical definition of 'day'. 17. It is impossible for the applicant to satisfy this condition if the parking commences just before 6.00 p.m., only one hour before 7.00 p.m. Even if the fee of 10 cents was a charge to park from 6.00 p.m. for a continuous period of at least 6 hours, that would not be for 'all-day parking' as defined in the Act. Similarly, the fee charged for vehicles entering the parking station from 1 p.m. is not a fee paid for 'all-day parking' as defined in subsection 136(1). After 1 p.m. it is impossible to park for a continuous period of six hours or more during a 'daylight period' on that day. Under the definition in subsection 136(1) a 'daylight period' ends before 7.00 p.m. on that same day.

Legislative references: Fringe Benefits Tax Assessment Act 1986 subsection 39A(1) subparagraph 39A(1)(a)(ii) subparagraph 39A(1)(a)(iii) subsection 136(1)
Case references: Case 27/95 95 ATC 275 30 ATR 1297
Subject references: Car parking fringe benefits FBT daylight period Fringe benefits Fringe benefits tax