Private ruling: Fringe benefits tax – car parking benefits – minor benefits
Date of advice: 8 February 2019
Published: May 2019
Ruling period: FBT Year Ending 31 March 2018 | FBT Year Ending 31 March 2019 | FBT Year Ending 31 March 2020 | FBT Year Ending 31 March 2021
Date scheme commenced: 1 April 2017

Ruling: Q1: Is the airport car park that is located within 1 km of the Taxpayer’s work premises a commercial parking station as defined in section 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)? | A1: Yes | Q2: If a car park fringe benefit arises, does the benefit qualify for minor benefits exemption under section 58P of FBTAA? | A2: No

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The Taxpayer is a local government entity. The Taxpayer provides its employees with car parking for at least four hours a day at the Taxpayer’s business premises. The car parking facility is an open air parking facility ungated during the day, locked up with a boom gate after 6:30PM each day. The area is sealed with a mixture of bitumen and concrete areas, having readily identifiable marked bays. There is a total of X bays. Staff can access the above parking facility each day between 6:30AM and 6:30PM. Car spaces cannot be reserved and are filled on a first in basis. The employer doesn’t keep any records of use of the facility by the employees. Some of the parking bays are occasionally occupied by heavy vehicles and machinery which belong to the employer and have no private use by the employees. The surrounding development consists of industrial office/warehouse style facilities with off-street car parking. There is also unmetered street parking available in the surrounding streets with no restrictions on parking duration. An airport is located within 1 kilometre from the Taxpayer’s premises, and provides short-term and long-term car parking facilities for a fee. The airport short term parking fees are: ● 2017/18 year $11 for 5-6 hours, and $14 for 6-24 hours or $84 weekly for 7 days; ● 2018/19 year $10 for 3-6 hours, and $15 for 6-24 hours or $90 weekly for 7 days The airport long term parking fee is currently a flat rate of $22 per day or $132 weekly. The Taxpayer has provided the parking statistics of the airport parking usage collected by the airport. According to the statistics, all-day parking (which would be included in the 6-24 hrs time parking duration) accounted to 3.9%, long term parking to 1.9% and multi-days parking to 9.4% of the total throughput in 14-months period. The throughput for the 0-2 hr time slot was 84.8% for the same 14 months period. A valuation report has been supplied by the Taxpayer, establishing the market value of the parking spaces for FBT purposes. The valuation established a current market rental value of the car parking bays provided by the Taxpayer to the employees was $330 inclusive of GST per car park per annum. The taxpayer contends that the valuation of the benefit applicable to each employee would be a maximum of 5/7th of the market rental value of each bay, as the employees are provided with the parking benefit 5 days a week only. The car parking facility is at the relevant employee’s employment premises, the employees do not make any contributions to pay for the parking facility, it is not part of the employees’ salary packaging. The tax agent hasn’t provided the number of relevant employees using the car parking facility. The tax agent has confirmed that the average number of days the employer’s car parking facility is available to the employees would be 228 days per annum.

Relevant legislative provisions: Section 136(1) of the Fringe Benefits Tax Assessment Act 1986 | Section 58P of the Fringe Benefits Tax Assessment Act 1986 | Subsection 39A(1)of the Fringe Benefits Tax Assessment Act 1986 | The Explanatory Memorandum to Taxation Laws Amendment (Car Parking) Bill 1992

Reasons for decision: Summary: The airport parking is a permanent commercial parking facility with parking spaces available in the ordinary course of business to members of the public for all day parking on payment of a fee. Therefore it is a commercial parking station | Detailed Reasoning - Detailed reasoning: The parking facilities being considered in this ruling are located within one kilometre of the premises on which the employees park their cars. For the purposes of this ruling it is accepted that a car parking benefit as defined in subsection 39A(1) of the FBTAA will arise from the parking if the relevant parking facility is a commercial parking station. Commercial parking station is defined in subsection 136(1) of the FBTAA to mean: …a permanent commercial car parking facility where any or all of the car parking spaces are available on the ordinary course of business to members of the public for all-day parking on that day on payment of a fee, but does not include a parking facility on a public street, road, lane, thoroughfare or footpath paid for by inserting money in a meter or by obtaining a voucher. In considering the application of the definition of commercial parking station it is necessary to determine whether the parking facility ● is a permanent car parking facility ● is a commercial car parking facility ● provides car parking spaces in the ordinary course of business to members of the public for all-day parking on payment of a fee, and ● is not a parking facility on a public street, road, lane, thoroughfare or footpath paid by inserting money in a meter or obtaining a voucher. Guidance for considering each of these issues is provided in Taxation Ruling TR 96/26 Fringe benefits tax: car parking fringe benefits (TR 96/26). Are the parking facilities a permanent parking facility? The Explanatory Memorandum to Taxation Laws Amendment (Car Parking) Bill 1992 (Explanatory Memorandum) stated the word 'permanent' has its normal dictionary meaning. It also provided several examples including a car park set up for a short period to cater for a special function (like an Easter Show) which it stated would not be permanent. Further examples are provided in paragraph 81 of TR 96/26 which states that the following examples are regarded as not constituting commercial parking stations: ● car parking that is established for a short period to cater for a special function; ● parking facilities provided by a sporting venue to persons associated with the venue where: (a) parking facilities are usually available only after 5 pm to coincide with night events; or (b) parking is available only for a specific event, and the event is a daytime event; or (c) parking is available to all members of the public only during sporting events; provided that, when there is no such event, the parking facilities are not usually available to members of the public. The Macquarie on line Dictionary defines permanent to mean: 1. lasting or intended to last indefinitely; remaining unchanged; not temporary; enduring; abiding In applying this definition and the examples, the Airport parking is a permanent parking facility, as it is an established carpark that is operated on an ongoing basis into the foreseeable future. Are the parking facilities commercial facilities? The term 'commercial' is not defined in the FBTAA. The Explanatory Memorandum stated the word 'commercial' has its normal dictionary meaning. As an example of a parking facility that would not be regarded as a commercial facility it stated that a car parking facility that is not run with a view to making a profit (usually reflected in significantly lower car parking rates charged compared with normal market for that facility) would not be commercial. This example was also provided in paragraph 81 of TR 96/26 which provided the following example of a parking facility that would not be regarded as being commercial: a car park that is not run with a view to making a profit or which charges a nominal fee (usually a significantly lower rate than the current value), e.g., an all-day parking fee of less than $2.00 is likely to be a nominal fee. The Macquarie on line Dictionary defines commercial as follows: adjective 1. of, or of the nature of, commerce. 2. engaged in commerce. 3. capable of returning a profit: a commercial project. 4. capable of being sold in great numbers: is the invention commercial? In applying this definition and the examples, the airport parking facility is considered to be a commercial facility as the fees charged cannot be considered to be nominal, and are reflective of the fees that would be charged by a car parking facility that operates on a commercial basis. The Taxpayer provides the following findings of their research into the car parking rates charged by the regional airports in the relevant precinct: Airport Parking fees charged Airport 1 0-2 hrs $2 5-6 hrs $11 6-24 hrs $14 1 day in the long term car park $22 Airport 2 15 mins-1 hr $4 1-2 hrs $6 5-6 hrs $14 9-24 hrs $24 1 day in the long term car park $22 Airport 2 0-30 mins $2 8-24 hrs $25 1 day in the long term car park $25 (covered parking), $17 (covered walkways), $15 (further away from the airport) Airport 4 (metropolitan) Budget and uncovered: 10-30 mins $6 24 hrs $30 1 day in the long term car park $49 Covered: 0-30 mins $8 30-60 mins $12 1-2 hrs $15 1 day in the long term car park $63 Airport 5 30 mins $5 3-4 hrs $11 1 day in the long term saver park $19 1 day in the long term select park $26 day in the long term select park $26 The above fees charged by the airport and the other airports are comparably similar. The variations in long-term and short-term parking fees across the airports may be due to the popularity of the location, the amount of traffic and other objective factors. The fees charged by the airport are not in any way nominal. Do the parking facilities provide car parking spaces in the ordinary course of business to members of the public for all-day parking on payment of a fee? The airport parking facility provides car parking spaces that can be used on payment of a fee. | Detailed Reasoning - Are the car parking spaces provided in the ordinary course of business?: In considering whether these spaces are provided in the ordinary course of business, the definition of business operations in subsection 136(1) of the FBTAA provides that business operations in relation to a government body or a non-profit company includes any operations or activities carried out by that body or company. In applying this definition it is accepted that the car parking space are offered as part of the day to day operations or activities carried out by the airport. | Detailed Reasoning - Are the car parking spaces provided to members of the public?: The circumstances in which a parking facility will be considered to provide car spaces to members of the public was considered by the Full Federal Court in FC of T v Qantas Airways Ltd [2014] FCAFC 168; 2014 ATC 20-477 (Qantas). In its submission to the court, Qantas submitted the meaning of 'public' was to be understood as being the public including persons commuting between home and work and not some broader public constituted by anyone using an airport parking station, such that the airport parking stations should be disregarded because employees did not use them. The Court held that the word 'public' should be given its ordinary meaning and that there is no rationale for imputing into the definition a requirement that a commercial parking station be one that employees of the employer commuting to work by car would or could in fact use. The ordinary meaning of 'public' is discussed in paragraphs 19 to 21 of Taxation Ruling TR 2000/10 Income tax: public libraries, public museums and public art galleries (TR 2000/10). At paragraphs 19 and 20 TR 2000/10 refers to the decision In re Income Tax Acts (No 1) [1930] VLR 211 . Paragraphs 19 and 20 of TR 2000/10 state: 19. In deciding whether other institutions make their collections available to the public, some guidance is given by the principles In re Income Tax Acts (No 1) [1930] VLR 211. This case considered whether a benevolent asylum was 'public'. The asylum had been founded and controlled by Freemasons for the benefit and their wives and widows. The Court held that the institution was not carried on for the benefit of the public. The word 'public' in relation to institutions connotes 'the carrying on of the institution for the benefit of the public generally, or at least of a definitely ascertainable section of the public, where the benefit of the institution is available without discrimination to every member of the public or of that section of it' (per Lowe J at [1930] VLR 222). 20. By example, Lowe J went on to suggest that a club, literary society or trade union would not be construed as public. He distinguished these associations by the power they had to admit or exclude members of the public. The provision of rules and regulations, which accorded some arbitrary test before membership, distinguished these bodies. Public character was missing due to selective membership. Where admission to membership of a body or inclusion in a class depends on the consent of members or of a committee of members, it is not provided for 'a section of the public'. Such associations exist for the benefit of their members, not the public or a section of the public. Paragraph 81 of TR 96/26 provides the following examples of parking arrangements that are not considered to be made available to members of the public: ● car parking spaces leased to a tenant by a property developer as part of an overall lease arrangement for business premises; ● parking provided by a business for its own employees and those of a nearby business, but to no other person; ● in an area without a commercial parking station and where street parking is not permitted, arrangements made by a business for its employees to park during business hours in yards and driveways of surrounding houses. In applying this discussion, the airport parking facility is available to be used by the public at large. | Detailed Reasoning - Are spaces available for all-day parking?: All-day parking is defined in subsection 136(1) of the FBTAA to mean: parking of a single car for a continuous period of 6 hours or more during a daylight period on that day. Subsection 136(1) of the FBTAA defines 'daylight period' to mean the period of the day that occurs after 7 a.m. and before 7 p.m. on that day. The Explanatory Memorandum provides the following example of a parking arrangement that will not constitute a commercial parking station as it does not provide all-day parking: Some car parking facilities have a primary purpose to provide short-term shopper parking. To discourage all-day parking, the operators of these facilities charge penalty rates for all-day parking. These rates are significantly greater than the rates that would be charged by a similar facility which encouraged all-day parking. For the purposes of these provisions, short-term shopper parking facilities using penalty rates for all-day parking will not be treated as a "commercial parking station". This example is also included in paragraph 81 of TR 96/26. In applying the definition and examples, it is possible to park in the Airport car park for a continuous period of at least six hours as the car park is open for 24 hours a day 7 days a week. Weekly tickets are also available. Although the rates charged are significantly higher than the surrounding area, there is no basis for concluding that these rates have been charged to discourage all-day parking. In this regard, the rates charged can be summarised as follows: 2017-18 rates Time parked Total Charge Fee/hour 0 - 2 hour $2 $1 2 - 3 hours $4 $1.33 3 - 4 hours $6 $1.50 4 - 5 hours $8 $1.60 5 - 6 hours $11 $1.83 6 – 24 hours $14 $0.58 Weekly (7days) $84 $0.50 2018-19 rates Time parked Total Charge Fee/hour 0 - 3 hour $3 $1 3 - 6 hours $10 $1.66 6 – 24 hours $15 $0.62 Weekly (7days)$90 $0.54 From these tables it can be seen that the fee per hour increases slightly from one band to the next, until it reaches the 6 – 24 hours band, where it drops down significantly. There is no indication of penalty rates being charged for all-day parking. The situation is comparable with the airport carparks considered in Qantas. In considering whether the prices charged for parking in the short term carparks were intended to act as a disincentive for six hour or longer stays, the Administrative Appeals Tribunal in Qantas Airways Limited and Commissioner of Taxation [2014] AATA 316; 2014 ATC 10-360 at paragraph 59 said: In the present circumstances, while the prices charged for short term parking for six hours or more may be high, it is not apparent that the car parking spaces are intended as a disincentive for six hour or longer stays. There are distance, convenience and cover advantages that might be reflected in the rate differentials. At least substantially, if not predominantly, users of all kinds of airport facilities are more likely to be six hour or greater users of the facilities in the ordinary course and, with the possible exception of the Brisbane Airport given its website content, this is not discouraged. In any event, there is not sufficient evidence to conclude that the rates are a penalty as opposed to a situation of a facility provider charging a fee that the market will bear having regard to the cost of alternate convenient transport to and from the airport. This conclusion was not raised when the matter was considered by the Federal Court. Therefore, as the requirements for commercial parking station listed in the legislation are met, i.e. the airport parking is a permanent commercial parking facility with parking spaces available in the ordinary course of business to members of the public for all day parking on payment of a fee; it is a commercial parking station. | Summary: The minor benefits exemption conditions in section 58P of the FBTAA are not satisfied. The value of the benefit exceeds the threshold of “less than 300”, the benefit is provided on a regular basis and is not provided in relation to an unexpected event. | Detailed Reasoning - Detailed Reasoning: In limited circumstances the provision of a car parking benefit may be exempt if the minor benefits exemption conditions in section 58P of the FBTAA are satisfied. SECTION 58P EXEMPT BENEFITS - MINOR BENEFITS 58P(1) [Tests for exemption] Where: (a) a benefit (in this section called a minor benefit ) is provided in, or in respect of, a year of tax (in this section called the current year of tax ) in respect of the employment of an employee of an employer; … (e) the notional taxable value of the minor benefit in relation to the current year of tax is less than $300; and (f) having regard to: (i) the infrequency and irregularity with which associated benefits, being benefits that are identical or similar to: (A) the minor benefit; or (B) benefits provided in connection with the provision of the minor benefit; have been or can reasonably be expected to be provided; (ii) the amount that is, or might reasonably be expected to be, the sum of the notional taxable values of the minor benefit and any associated benefits, being benefits that are identical or similar to the minor benefit, in relation to the current year of tax or any other year of tax; (iii) the amount that is, or might reasonably be expected to be, the sum of the notional taxable values of any other associated benefits in relation to the current year of tax or any other year of tax; (iv) the practical difficulty for the employer in determining the notional taxable values in relation to the current year of tax of: (A) if the minor benefit is not a car benefit - the minor benefit; and (B) if there are any associated benefits that are not car benefits - those associated benefits; and (v) the circumstances surrounding the provision of the minor benefit and any associated benefits including, but without limiting the generality of the foregoing: (A) whether the benefit concerned was provided to assist the employee to deal with an unexpected event; and (B) whether the benefit concerned was provided otherwise than wholly or principally by way of a reward for services rendered, or to be rendered, by the employee; it would be concluded that it would be unreasonable to treat the minor benefit as a fringe benefit in relation to the employer in relation to the current year of tax; the minor benefit is an exempt benefit in relation to the current year of tax. Taxation Ruling TR 2007/12 Fringe benefits tax: minor benefits (TR2007/12) contains comprehensive guidance on the application of the minor benefit exemption in section 58P of FBTAA. Paragraphs 153 and 156 in Appendix 2 of TR 2007/12 states: 153. To be considered an exempt benefit for the purposes of section 58P the benefit must first have a notional taxable value of less than $300. … 156. Whether a minor benefit that has satisfied the threshold test is an exempt benefit can only be determined by considering the five criteria stipulated in paragraph 58P(1)(f) and then reaching a conclusion that it would be unreasonable to treat that minor benefit as a fringe benefit. | Detailed Reasoning - Is the notional taxable value of the parking benefit less than $300?: Section 136(1) of FBTAA defines “notional taxable value” as follows: in relation to a benefit provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer, means the amount that, if it were assumed that: (a) in the case of a car benefit--the car benefit was a residual benefit; and (b) in all cases--the benefit was a fringe benefit in relation to the employer in relation to the year of tax; would be the taxable value of the fringe benefit in relation to the year of tax. Part C of TR 96/23 provides guidance on a number of valuation methods available to the Taxpayer to calculate the taxable value of the car parking fringe benefit: | Detailed Reasoning - Commercial car parking station method: Under this method, the employer records, and applies as the valuation, the lowest all-day fee charged by any commercial car park located within a 1 km radius of the employer-provided parking. The Taxpayer has not kept any records of the actual use of the car park and has not provided any information on regarding the number of car parking benefits each employee gets per annum. However, assuming that each employee receives one car parking benefit each day for 228 days in an FBT year, using the lowest all-day fee of $14 charged by the airport, the taxable value of the car parking benefit provided to each employee in an FBT year will be significantly more than $300. | Detailed Reasoning - Market value basis: The taxable value under this valuation method is the amount that the recipient could reasonably be expected to pay for the benefit if the provider and recipient were at arm's length. A market valuation, in a form approved by the Commissioner, must be provided by a suitably qualified valuer acting at arm's length in relation to the valuation. The valuation must be made before the declaration date which is generally the date of lodgement of the FBT return for the year. The cost and availability of parking of a similar standard near that being valued is relevant in determining the market value of a car parking fringe benefit. Example 7 Seaside Shire Council provides parking to employees in a parking area in which free all-day parking is also available to members of the public. In determining the value of the car parking fringe benefit provided by the council to its employees, it is appropriate for a valuer to consider the availability of that free public parking. Paragraph 50 of TR 96/26 provides Commissioner’s view on who would be considered a suitably qualified valuer: 50. A suitably qualified valuer must be at arm's length in relation to the valuation and must have expertise in the valuation of car parking facilities. We consider that expertise in the valuation of parking may be acquired through relevant experience in the parking industry over a significant period of time or from a course of study. The attainment of relevant professional qualifications or recognition by an appropriate professional organisation is indicative of expertise in this field. The onus of proving that a person has expertise in a particular field will rest in each case with the employer. A person who would be likely to be acceptable as an expert witness on the issue of the valuation of parking facilities before a Court or Tribunal would be considered to be a suitably qualified valuer. A valuer must be at arm's length in relation to the valuation. A market valuation of a car parking benefit must be provided in a form approved by the Commissioner. The valuation must: ● be in English; ● include the valuation date; ● give a precise description of the location of the car parking facilities valued; ● include the number of car parks valued and the value of the car parks based on a daily rate; ● state the full name of the valuer and a description of his or her qualifications as a valuer; ● be signed by the valuer; and ● include a declaration stating that the valuer is at arm's length in relation to the valuation The valuation provided by the Taxpayer has been completed by a registered valuer who satisfies the above requirements. The valuation report states that it has been conducted at arm’s length, includes the valuation date (prior to the lodgement of the relevant FBT return), is in English, gives the precise description of the car parking facility, includes the number of car parks valued, states the full name and the qualifications of the valuer and is signed by the valuer. The valuation report does not provide the value of the car parks based on a daily rate. Instead, it provides the current market rental value of $330 per bay per annum including GST. The “Valuation Comments” section of the report provides the following: In our assessment we have considered the following: ● Convenience of the car park to staff in relation to unmetered street car parking ● Provision of a secured facility ● The open air nature of the car park ● 5 day operation of car park between hours of 6:30am – 6:30pm As the valuer has already included the 5 day operation of the car park into the valuation, we consider it unnecessary to further reduce the market value of the car parking benefit to 5/7 th of $330. The notional taxable value of the car parking fringe benefit under the market value method is $330, which exceeds the threshold of “less than $300”. | Detailed Reasoning - Average cost method: Under this method, an employer calculates an average of the lowest fees charged to members of the public for all-day parking by a commercial car parking station within 1 km radius of parking facilities, on the first and last day in an FBT year. The taxable value is reduced by any recipient's contributions towards the benefit. The average cost of the car parking benefit under this method is $14.50 per day, which will add up to significantly more than $300 over the FBT year. While we have already established that the notional taxable value of the car parking fringe benefit exceeds the minor benefit threshold of “less than $300”, we consider it necessary to consider the minor benefit criteria listed in subsection 58P(1) of FBTAA. | Detailed Reasoning - Infrequency and irregularity with which associated identical or similar benefits are provided (subparagraph 58P(1)(f)(i)): The first criterion to be considered is the infrequency and irregularity with which associated benefits, being benefits that are identical or similar to the minor benefit or benefits that are given in connection with the minor benefit, are provided, or can reasonably be expected to be provided. 'Infrequency and irregularity' and 'identical or similar' are not defined in the FBTAA and therefore take their ordinary meaning. The Macquarie Dictionary[28] defines 'infrequent' as: 1. happening or occurring at long intervals or not often 2. not constant, habitual or regular and 'irregular' as: 2. not characterised by any fixed principle, method or rate: irregular intervals Generally, a fringe benefit will be a minor benefit if the notional taxable value of the benefit(s) is less than $300 in an FBT year and the benefit is provided on an irregular or infrequent basis. If a car parking benefit is provided on a regular basis it will not be considered to be a minor benefit, even if the notional taxable value may be less than $300. For example, In National Australia Bank Ltd v. Commissioner of Taxation (1993) 46 FCR 252; 93 ATC 4914; (1993) 26 ATR 503 (NAB case) Ryan J held that expenditure on taxi fares by the employer in relation to shift employees travelling to and from work were not exempt benefits. Ryan J held on the facts before the Court that even accepting that the notional taxable value of each taxi cab trip was 'small', the benefit was nevertheless not an exempt benefit under section 58P. It was not unreasonable to treat the presumptively minor benefit provided to the employee as a fringe benefit, as it was necessary to regard each journey by taxi cab undertaken in similar circumstances in the relevant year as an associated benefit. The sum of the presumptively minor benefits was substantial. In your case, the employer provides the car parking benefit to the employees on a daily basis (five days a week). Therefore, the benefit does not meet the criteria of irregularity. Sum of the notional taxable values of the minor benefit and associated benefits which are identical or similar to the minor benefit (subparagraph 58P(1)(f)(ii)) The second criterion to be considered is the amount that is, or might reasonably be expected to be, the sum of the notional taxable values of the minor benefit and any associated benefits, being benefits that are identical or similar to the minor benefit, in relation to the current year or any other year of tax. In your case, depending on the valuation method used, the sum of the car parking benefits provided over the current FBT year and the following years may be substantial. | Detailed Reasoning - Sum of the notional taxable values of any other associated benefits (subparagraph 58P(1)(f)(iii)): This criterion has regard to any other associated benefits; that is, associated benefits which are not identical or similar to the minor benefit. This will include those associated benefits which are provided in connection with the minor benefit and benefits which are identical or similar to a benefit provided in connection with the minor benefit. The car parking benefit provided by the Taxpayer to its employees daily over the FBT year does not appear to have any associated benefits which are not identical or similar to the car parking benefit. | Detailed Reasoning - Practical difficulty in determining the notional taxable values of the minor benefit and any associated benefits (subparagraph 58P(1)(f)(iv)): Given the availability of the valuation report and the information on the fees charged by the nearby commercial parking station, there is no practical difficulty for the Taxpayer in determining the notional taxable value of the car parking fringe benefit. | Detailed Reasoning - Circumstances surrounding the provision of the minor benefit and any associated benefits (subparagraph 58P(1)(f)(v)): The fifth criterion requires consideration of the circumstances surrounding the provision of the minor benefit. It is necessary to consider whether the benefit was provided as a result of an unexpected event and whether or not it could be regarded to be provided wholly or principally as a reward for services rendered, or to be rendered, by the employee. In your case, the car parking fringe benefit was not provided as a result of an unexpected event. Paragraph 241 of TR 2007/12 provides the following example of evaluation whether the benefit was provided wholly or principally as a reward for services rendered, or to be rendered, by the employee: …although a Christmas party provided to employees and their families may be considered to be a reward for services rendered or to be rendered, it would not necessarily be considered to have been provided wholly or principally by way of a reward for services rendered or to be rendered by the employee. In most instances a Christmas party would not be considered to be provided to an employee as a substitute for salary, wages or bonuses In your case, the car parking benefit was not provided wholly or principally as a reward for services rendered, or to be rendered, by the employees however the benefit was provided in relation to the employees’ employment. In conclusion, had the parking fringe benefit fallen under the “less than $300” minor benefit threshold, it still would not have met the criteria of the minor fringe benefit as per section 58P of FBTAA. Based on the criteria considered above, the car parking fringe benefit provided by the taxpayer to its employees doesn’t meet the definition of a minor fringe benefit in section 58P of the FBTAA.