Last
week, Virgin Blue received a ruling from the ATO regarding fringe benefits tax
on a Virgin Blue-subsidised staff car park two kilometres from Melbourne
Airport’s terminal. Despite the distance, which takes staff 20-25 minutes to
walk on less-than-ideal pedestrian facilities, the judge ruled that the car
park was ‘in the vicinity’ of the airport, and thus liable to the Fringe
Benefits Tax.
week, Virgin Blue received a ruling from the ATO regarding fringe benefits tax
on a Virgin Blue-subsidised staff car park two kilometres from Melbourne
Airport’s terminal. Despite the distance, which takes staff 20-25 minutes to
walk on less-than-ideal pedestrian facilities, the judge ruled that the car
park was ‘in the vicinity’ of the airport, and thus liable to the Fringe
Benefits Tax.
The
decision could have implications for other employers providing off-site parking
at airports or other businesses whose staff park at an employer-subsidised car
park. Several other factors in addition to proximity need to be satisfied for the
FBT liability to arise, including the presence of a commercial parking station
within one kilometre of the site where the cars are parked, charging above a
certain threshold.
decision could have implications for other employers providing off-site parking
at airports or other businesses whose staff park at an employer-subsidised car
park. Several other factors in addition to proximity need to be satisfied for the
FBT liability to arise, including the presence of a commercial parking station
within one kilometre of the site where the cars are parked, charging above a
certain threshold.
For
more information, view a copy of the AFR’s article, Too close for comfort, as a PDF here.
more information, view a copy of the AFR’s article, Too close for comfort, as a PDF here.