# Worked Example — Bounty #06

**Companion file to:** `01-brief.md`

## The scenario

**Employer:** MNO Advisors Pty Ltd
**Employer premises:** Level 5, 88 Phillip Street, Sydney NSW 2000
**FBT year:** 1 April 2024 to 31 March 2025 (FY2025)
**Employees given parking:** 12 senior staff, at employer's leased basement bays.

## Commercial parking stations within 1km (per Google Maps radius search)

| # | Operator | Address | Distance | All-day fee (early bird) | All-day fee (walk-in) |
|---|---|---|---|---:|---:|
| 1 | Secure Parking | 2 Bond Street | 380m | $32 | $95 |
| 2 | Wilson Parking | 55 Hunter Street | 620m | $28 | $80 |
| 3 | Care Park | 175 Pitt Street | 890m | $25 | $75 |
| 4 | Church-owned "public" carpark (paid) | 100 Elizabeth Street | 720m | (no early bird — $30 all-day flat) | $30 |
| 5 | Hotel-owned public parking | Sofitel, Elizabeth Street | 950m | $40 | $80 |

## The engine's determination

**Step 1 — Identify commercial parking stations**

Under TR 2021/2, "commercial parking station" is broader than the pre-2021 practice. Stations 1, 2, 3 are unambiguously commercial. Stations 4 and 5 (church-owned, hotel-owned) — post-TR 2021/2 — are also commercial parking stations because they are held out to the general public for a fee.

**Step 2 — All-day parking?**

The engine's current position: "all-day parking" means the fee for parking for a continuous 6+ hour period during the day.
- Station 1: yes (early bird is 6+ hours, $32).
- Station 2: yes ($28).
- Station 3: yes ($25).
- Station 4: yes ($30).
- Station 5: yes ($40).

**Step 3 — Lowest fee**

The engine uses the lowest early-bird fee across all stations: **$25** (Station 3).

**Step 4 — Threshold for FY2025**

FBT car parking threshold for FY2025 (year ending 31 March 2025): $10.77 (ATO published rate).

$25 > $10.77 → **THRESHOLD TRIGGERED**.

## The engine's conclusion

Car parking fringe benefit applies for FY2025. Downstream taxable-value calculation kicks in.

## What the reviewer is being asked

1. Post-TR 2021/2, are stations 4 and 5 correctly treated as commercial parking stations?
2. Is "early bird" fee the correct proxy for "lowest all-day fee"? Or should the walk-in rate be used?
3. Is 6+ hours the correct definition of "all-day"?
4. Is the $10.77 threshold correct for FY2025?
5. Anything else the calculator is missing?