Fuel Tax Credit Rates Increase

Do you claim fuel tax credits for fuel you use in your heavy vehicle, farm equipment or other machinery for your business? The Australian Taxation Office recently announced an increase to fuel tax credit rates on 3 February in line with fuel excise indexation.

Fuel tax credit rates change regularly. They are indexed twice a year, in February and August, in line with the consumer price index (CPI).

The fact is businesses that claim less than $10,000 in fuel tax credits each year can calculate claims using the increased rates that apply at the end of the BAS period. When there is a change of rate during the business activity statement (BAS) period (eg in February and August), you can calculate your fuel tax credit claim by using the rate that applies at the end of the period.

There is no need to split your fuel purchases during the period and use two different rates. Simply total your litres for the period and use the rate that is current on the last day of the BAS period to work out your claim.

Tools such as the ATO’s Fuel Tax Credit Calculator can assist with calculating this method. Simply enter all of your fuel into the final rate period and the calculator will use the right rates to work out how much you should enter on your BAS.

There are more ways that you can simplify your fuel tax credit calculations and claims, including some that are available to all businesses no matter how much you claim. To learn more, please contact your accountant at our office on 07 4632 1966 or visit the ATO website.


GENERAL ADVICE WARNING | The information provided in this article is for general information purposes only. It is not intended to be, nor should it be read as specific taxation advice. Before acting on any of the information contained in this article you should obtain special advice from a specialist advisor, which is appropriate to your specific business risk needs, objectives and situation.