Revenue Minister Peter Dunne announced on 3 October 2012 that Cabinet had made its final decisions on the suggestions outlined in the April 2012 issues paper Recognising salary trade-offs as income. As a result the proposed new rules are now narrower than originally suggested, focusing predominantly on employer-provided car parks,” Mr Dunne said.
Specifically, Cabinet has agreed on the following changes:
- A wider set of car parks provided to employees are to be taxed, through the FBT (Fringe Benefit Tax) rules. The new FBT rules will focus predominantly on car parks provided to employees in the Auckland and Wellington CBDs (the areas where the benefits to the employee are greatest). There will be certain exclusions, for example, for car parks used by work vehicles, for late night shifts and disabled car parks. To reduce compliance costs, standard values will apply when the car park is not provided through a commercial car park operator.