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FBT catastrophe hits Barton

By johnboy - 3 August 2010 41

The Canberra Times informs us of the imminent opening of the Morris Property Group’s Broughton Street parking lot in Barton.

Due to the Morris Property Group setting the day fee 54 cents above the FBT threshold the 10,000 odd public servants who work within 1km of the car park are now going to be hit with fringe benefits tax for their on-site parking.

The AFP, Foreign Affairs, Environment, Finance, Attorney-General’s, Prime Minister and Cabinet, and Parliament House will all be copping the sting when the park goes live in two weeks time.

One hopes the bus system, already chaotic on National Circuit around 5pm, can cope.

What’s Your opinion?


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41 Responses to
FBT catastrophe hits Barton
1
p1 10:40 am
03 Aug 10
#

Is this FBT debt something that the employer has to pay? And is it paid for each employee, or only those who actually part for free on the employers land, thus gaining the fringe benefit of working there?

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2
Growling Ferret 10:51 am
03 Aug 10
#

JB

I’m pretty sure the FBT only kicks on for the staff who are provided an allocated car park, not just normal plebs who are suffering the parking nightmare that is currently unfolding!

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3
Growling Ferret 11:04 am
03 Aug 10
#

he ATO

‘A car parking fringe benefit may arise if you provide car parking to your employee and:

there is a commercial car parking station within a one kilometre radius of where the car is parked, and
that commercial car parking station charges a fee for all day parking that is more than the car parking threshold.
The car parking threshold is indexed in line with the consumer pricing index. It is announced each year in a taxation determination, usually published during April.

So for the Public Circus, it will effect SES, Exec Assistants, those who get special permits due to illness and disability, but not the general populace.

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4
S4anta 11:10 am
03 Aug 10
#

Growling Ferret said :

JB

I’m pretty sure the FBT only kicks on for the staff who are provided an allocated car park, not just normal plebs who are suffering the parking nightmare that is currently unfolding!

I think if it is a salary sacrifice thing, FBT does come into the mix. Will need a beancounter to confirm though…

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5
random 11:21 am
03 Aug 10
#

Growling Ferret, that is not right. If you read the act it’s clear that it applies to everyone.

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6
georgesgenitals 11:26 am
03 Aug 10
#

It will be interesting to see how things are handled when a building has a common carpark (like mine does), and people park until the carpark is full.

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7
John Moulis 11:26 am
03 Aug 10
#

It won’t just affect public servants. Tourists who attend the attractions within the Parliamentary triangle will have to pay as well. Not to mention students and other low income earners (ie: the disabled) who utilise the National Library. Would the recent exhibition at the National Gallery have been such a success if pay parking was operating? I know first hand about such a tax on tourism. I used to visit Bondi Beach every few weeks back in the early 1990s but I stopped going altogether because every time I returned to my car I’d find the inevitable souvenir of Sydney – a parking ticket under the wiper. Public transport within the Parliamentary triangle is very poor so that really isn’t an option. You would think the powers that be would be doing all they can to attract tourists and look after low income earners but I guess the lure of all that extra revenue proved too tempting in the end.

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8
random 11:53 am
03 Aug 10
#

p1 said :

Is this FBT debt something that the employer has to pay? And is it paid for each employee, or only those who actually part for free on the employers land, thus gaining the fringe benefit of working there?

It’s on the employer. They can pay per space or per employee (if you only have 10 spaces you don’t have to pay for 500 employees, or vice versa), or do a survey to determine usage.

Given the “common carpark” problem and the administration costs of managing a parking system, parking meters are the obvious answer.

John Moulis said :

Would the recent exhibition at the National Gallery have been such a success if pay parking was operating?

I hear that the Portrait Gallery has made it so you need to validate your parking (for free) at the front desk in order to get out of the carpark, to stop public servants parking there.

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9
Jim Jones 11:59 am
03 Aug 10
#

John Moulis said :

It won’t just affect public servants. Tourists who attend the attractions within the Parliamentary triangle will have to pay as well. Not to mention students and other low income earners (ie: the disabled) who utilise the National Library. Would the recent exhibition at the National Gallery have been such a success if pay parking was operating? I know first hand about such a tax on tourism. I used to visit Bondi Beach every few weeks back in the early 1990s but I stopped going altogether because every time I returned to my car I’d find the inevitable souvenir of Sydney – a parking ticket under the wiper. Public transport within the Parliamentary triangle is very poor so that really isn’t an option. You would think the powers that be would be doing all they can to attract tourists and look after low income earners but I guess the lure of all that extra revenue proved too tempting in the end.

There’s no parking at the NLA and around that area now anyway – because it’s free parking, all the spots are taken up by office workers.

It’s inevitable that the area will become pay parking. Hopefully this will also drive demand for public transport.

The argument that pay parking will ‘damage tourism’ is spurious. Visit the attractions in Sydney and see how much free parking there is. Bondi Beach is hardly empty, despite your refusal to attend.

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10
Clown Killer 12:04 pm
03 Aug 10
#

If you read the act it’s clear that it applies to everyone.

I believe that for that part of the Act to apply you’d have to show that the employer – in this case the specific department (not the Commonwealth public service in general) provided the parking free of charge, which I dont think is the case. For instance the carpark beween the John Gorton Building and Kings Avenue may be used by Dept. of Finance and Dept. of Environment employees but the car park doesnt belong to those departments so technically they’re not providing the parking – it just happens to be next to their building.

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11
artuoui 12:07 pm
03 Aug 10
#

Much as I appreciate the wisdom each of you demonstrate in all of your comments – I’m not coming near any of you if ever I need to seek legal or taxation advice.

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12
tortfeaser 12:43 pm
03 Aug 10
#

Johnboy’s a few years behind. Agriculture has been in Civic for years. The Edmund Barton Building now houses the AFP.

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13
johnboy 12:45 pm
03 Aug 10
#

thanks, fixed.

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14
dtc 1:46 pm
03 Aug 10
#

So one part of the Commonwealth is paying tax to another part of the Commonwealth, in order for the second part of the Commonwealth to have money to fund the first part of the Commonwealth that gave it the money in the first place?

Have I got that right?

Is this really going to be an issue? Cant Finance do some magic tricks and hand the money straight back or do a book keeping exercise so the money never actually leaves?

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15
Buzz2600 1:52 pm
03 Aug 10
#

How about the dirt bog or “Siberia” as some call it around PM&C? …is mud the fridge benefit?

My partner and I already carpool, so busing it now means double ticket costs, not cost effective when we add it up. How will the ACT Govt justify paid parking in Siberia? Try finding a supermarket, a dry cleaners, chemist or a medicare here … there is no services in Barton! Walking to Kingston or Manuka is at least 45 minutes to 1 hour roundtrip depending on speed and needs (if I get a chance to leave at lunchtime) from where I am. It’s hardly convenient. If I worked in Civic at least I would have a choice of services before, during and after work.

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