A report prepared by the New Zealand Transport Agency has recommended that the government investigate changing the fringe benefit tax to include employer-subsidised parking.
The proposed additional tax is being considered to address concerns that employees are undermining attempts to ‘encourage more efficient commuting behaviour’. According to Stuff.co.nz, more than half of the country’s workforce is estimated to have access to free parking provided by their employer.
The report has calculated the value for the potential tax benefits in $675million annually, based on the value of car parking in Auckland, Wellington and Christchurch at around $2,700 per employee.
The NZTA report also recommends that the government explore introducing variable fringe benefit tax rates for company cars based on their size and greenhouse gas emissions.