Here are some of the actual trendy issues happening with auto parking:

Salary Product packaging and by using Employee contribution method

More business employers are allowing employees for you to salary package a car parking place and help make an soon after tax contribution to the provision in their car parking benefit. This works much like motor automobile novated let arrangements. Savings collect to the two employees and also the employer.

Cashing out there

Cashing out the vehicle parking gain for pay and wages is obviously trendy however, not necessarily favourite. Cashing out may cause headaches for the two employees and also the employer. From the actual employee perspective it could be challenging finding an economical long period parking remedy. Whilst employers usually are motivated by reducing advantages to minimize administration, the chopping of auto parking can cause unhappy employees since they bring their auto parking woes in the workplace.New Trends In Auto Parking Technology

The 12 week registers technique

The preparation of your 12 week auto parking “logbook” register is frequently a great way to reduce the actual FBT liability. This may be accomplished on staff by personnel basis or higher broadly. In addition to like just about all FBT “logbooks”, once it’s done, it is still valid pertaining to 5 several years. This is particularly relevant pertaining to salary tied in parking and sometimes the personnel will capture the vehicle parking use together with a vehicle logbook.

Concessionally taxed auto parking

This is in which the fun will begin! How low could you go? The low the better = much less FBT to pay! Why shell out more FBT than you need to?

The Average Cost Process is easily the most common valuation means for concessionally taxed auto parking. It is additionally the Way employers unconsciously (as is frequently the case), pay much more FBT than is needed.

We underscore below the actual significant financial savings employers can do using suggestions for 10, 20, 40 and 50 spaces, and regular daily rates including $18 because of $10. This potential reduction in average day-to-day rates is usually indicative of precisely what is achievable. A small reduction from the daily rate makes for a large FBT keeping.

Car parking not susceptible to FBT

or Exempt auto parking

Car parking could be exempt or not susceptible to FBT for a number of reasons, which include:

  • There isn’t any commercial car parking station (CPS) within a 1 km radius (shortest functional route) from the premises in which the employer supplies the car parking that charges more than the day-to-day threshold total as the lowest fee for a full day of parking about the first day from the FBT season – that’s the mouthful. The patience is adjusted each and every year. For the actual FBT season ended 31 March 2014 the actual threshold total is $8. Goal (2013 $7. 83), (2012 $7. 71) & (2011 $7. 46) on a daily basis.
  • There isn’t any CPS within a 1 km radius. WHOLE STOP
  • When the actual employee theme parks their car from the employer provided auto parking space for a 24 hour or so midnight for you to midnight time. This is frequently the situation where staff is travelling.
  • When the vehicle is parked from the car parking space at less than 4 hours in whole between 7am and also 7pm. This can arise according of staff in the sales role who’s going to be while travelling most of the time or the shift staff member who will begin work late from the afternoon or finishes early every day.New Trends In Auto Parking Technology.
  • When the actual parking price is supplied (reimbursed) according of enterprise travel. The real key here is it being sure the car parking fee may be incurred although on enterprise travel.

It’s important to test your businesses particular instances, locations, auto parking policy and also reimbursement plan, to see if your above exemptions and also reductions might apply. Only a few organisations are susceptible to FBT on auto parking, so this also needs to be considered. Get your dsa practical test today.

About The Author