The particular circumstances that coronavirus has thrown our way appear to have some practical outcomes on some regions of fringe benefits tax. One of the most common and well-established categories of fringe benefits is vehicle provision and use. For example, parking a car is a benefit that comes with particular conditions regarding the taxable values that attract FBT. Tax & accounting services in Victoria Point lets you know all about it.
A Work Parking Lot Has Closed.
Suppose a business’s office is closed due to COVID- 19 on a specific day, and therefore the work car park is likewise closed. In that case, the employer will not have a car parking benefit because no vehicle space will be available for use by an employee for more than four hours between 7.00 am and 7.00 pm on that day. The time that the work car park is closed will not be counted as part of the available periods used to compute the taxable value of a parking spot under the statutory method.
Closed Commercial Parking Garages In The Neighbourhood
There will be no automobile parking advantages if all commercial parking stations within a one-kilometre radius of company premises are closed due to COVID-19 on a specific day.
Commercial Parking Stations Offer Reduced Rates.
If on April 1, 2020, the lowest cost paid by all commercial parking stations within- a kilometre radius of company premises for all-day parking was less than $9.15, the employer would not have granted a car parking benefit. For example, this may happen if all business parking lots have reduced all-day parking rates due to COVID-19.
However, the lowered rate cannot be significantly higher or lower than the average of the lowest fee paid by a commercial parking station operator in the four weeks preceding or after April 1, 2020. If the lowered rate does not fulfil this condition, the ATO holds that it is ignored when assessing the lowest fee imposed by a neighbouring commercial parking station.
The Vehicle Was Returned To The Employer’s Business Premises.
An employer will not grant a car fringe benefit if the automobile is not supplied for an employee’s personal use or is not assumed to be accessible for an employee’s usage.
Tax & accounting services in Brisbane make sure to keep you aware of all the possibilities. During a time of COVID-19 limitations, an automobile given to an employee is not considered available for the employee’s personal use if all of the following conditions are met:
- The vehicle is returned to the company’s premises.
- The employee is unable to obtain entrance to the car.
- The employee has waived the right to use the automobile for personal reasons.
According to the ATO, some indicators that an automobile is not available for an employee’s personal use during these limits include-
- The employer requires that the vehicle can be returned to the business premises.
- The employee does not consistently have physical access to the vehicle and the company.
- It implements a policy that an employee cannot acquire access to the vehicle.
- If an employee has decided to surrender the automobile, they cannot alter their mind and regain access to the vehicle.
- The automobile is returned to its facilities, and the employer uses it for a new purpose. (Although a particular car benefit may arise if the car goes to another employee who applies it for private use).
Work Vehicles Are Stored At An Employee’s Residence.
Due to COVID-19, an employer may have stored work vehicles at workers’ houses.
The employer may be exempt from FBT responsibility if:
- the vehicle’s make and model
- how frequently the automobile is driven, and
- the technique of computation they use for automotive benefits
Keeping Track of Things
The driving habits of a company’s employees may have changed due to the impacts of COVID-19. If an employer adopts the operational cost technique, they may already have a logbook. They can still use this logbook to estimate the number of business kilometres travelled. They can also keep a new record typical of company use for the entire year.
