Car Parking Benefits

James Murphy Tax


Please advise if when using the statutory formula method for calculating FBT payable, if we should be using Type 1 or Type 2.

Please provide an extract from the legislation if possible.


The difference between a Type 1 fringe benefit and a Type 2 fringe benefit is whether the amount is entitled to a GST credit. Type 1 fringe benefits are a GST taxable supply with an entitlement to a GST credit whereas, with Type 2 fringe benefits, the provider of the benefit is unable to claim a GST credit.

As a commercial organisation entitled to claim GST credits your markup rate is 2.0802.

Refer to page 109 of our annual publication.

Also, see -Fringe benefits tax – a guide for employers -Chapter 16 – Car parking fringe benefits.