ATO ID 2007/45: Car Parking Fringe Benefits: 12 week record keeping method - change to location of car parking facilities
Date of decision: 26 February 2007
Year of income: Year ended 31 March 2007
Business line: Superannuation and Employer Obligations

Issue
Where an employer uses the '12 week register method' for determining the taxable value of a car parking fringe benefit, will the fact that the employer later changes the location of their car parking facilities on which the taxable value has been calculated, mean that this register ceases to be valid under section 39GF of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Decision
No. The act of changing the location of the car parking facilities will not invalidate the original register under section 39GF of the FBTAA.

Facts
An employer provides car parking fringe benefits in respect of its employees. In determining the taxable value of these benefits, the employer has elected under section 39GA of the FBTAA to use the 12 week record keeping method, commonly known as the 12 week register method. The register is completed within a 12 week period wholly within a fringe benefits tax (FBT) year. In the following FBT year, the employer changes car parking facilities with the only change being that the total car park spaces have increased by an amount which represents less than a 10% increase in car parking fringe benefits for that year.

Reasons for decision
Summary: Section 39GF of the FBTAA contains the rules which apply to determine the FBT years for which the register is valid. As provided for in subsection 39GF(1) of the FBTAA, where a register has been completed, then subject to subsections 39GF(3) and 39GF(4) of the FBTAA, the register will be valid for the following four FBT years. Under subsection 39GF(3) of the FBTAA, a register will cease to be valid if the number of car parking fringe benefits for the employer increases by more than 10% on any day in that FBT year. As the increase in car parking spaces is less than 10%, the existing register has not been invalidated by this action. Under subsection 39GF(4) of the FBTAA, a register that is valid for an FBT year ceases to be valid, if there is a later valid register that is kept for that FBT year that covers the same employee. As a later register has not been commenced at this stage, the original will be valid for the remaining time that it has to run in terms of subsection 39GF(1) of the FBTAA. The change of location of the employer car parking facilities does not mean the register that has been maintained ceases to be valid under section 39GF of the FBTAA.

Legislative references: Fringe Benefits Tax Assessment Act (1986) section 39GF subsection 39GF(1) subsection 39GF(2) subsection 39GF(3) subsection 39GF(4)
Subject references: Car parking fringe benefits Fringe benefits Fringe benefits tax