Fuel Tax Credits: get money back for your business
2 June 08Did you know that from 1 July 2008 most businesses can claim fuel tax credits? If you haven't checked your eligibility for a while, you may want to check again.
To date, you've been able to claim for fuel used in heavy vehicles travelling on a public road, if they had a gross vehicle mass (GVM) greater than 4.5 tonne. You've also been able to claim for activities such as agriculture, forestry, fishing, mining, and marine and rail transport.
Now you can also claim fuel tax credits for the diesel and petrol you use in a whole range of activities that weren't eligible before, including machinery, plant and equipment used in activities such as construction, wholesale, retail, property management and landscaping. Make sure you don't miss out!
Get on board
If your business is registered for goods and services tax but not fuel tax credits, check whether this latest expansion makes you eligible. It's easy to get on board – just phone 137226 anytime (24 hours a day, seven days a week) to register. Make sure you have your Australian business number and your tax file number handy when you call.
If you're already receiving fuel tax credits, look into whether you can receive more now. If this brochure doesn't answer your questions, get hold of a copy of Fuel tax credits for business (NAT14584) by phoning 1300720092.
Are fuel tax credits for you?
Fuel tax credits in a nutshell
There are three different rates of fuel tax credits depending on the way you use fuel in your business activities, as explained in this table.
|
Activities |
Rates as at 1 July 2008 |
|
Do you use fuel in heavy vehicles (with a GVM greater than 4.5 tonne) travelling on a public road? |
Claim this at 18.51 cents per litre* |
|
Do you use fuel in specified activities such as agriculture, forestry, fishing, mining, marine and rail transport, electricity generation and non-fuel uses that have been eligible since 1 July 2006? |
Claim this at 38.143 cents per litre |
|
(After 1 July 2008) |
Claim this at 19.0715 cents per litre** |
- This rate accounts for the road user charge, which is subject to change. To check the current rate for these activities, visit www.ato.gov.au/fuelschemes or phone 132866.
- The rate of 19.0715 cents per litre is 50% of the full rate of 38.143 cents per litre. The full rate will apply to all these activities from 1July 2012.
After 1 July 2008, there are even more benefits to being registered. You can claim fuel tax credits for much of the fuel you buy and use in your business from that date. The only exceptions are aviation fuels, alternative fuels and fuels used in light vehicles (of 4.5 tonne GVM or less) travelling on a public road.
This means that under the expanded eligibility you can claim around $19 in fuel tax credits for every 100 litres of fuel you use in your business, even if you use it in machinery, plant or equipment such as:
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Once you've registered, we'll add another label to your business activity statement (BAS) and send you information on how to claim.
Keep your usual business and tax records that show which activities you're involved in and then hang on to any records that show you bought the fuel and how you used it in your business.
When it's time to do your BAS, work out how much fuel you've used, what the correct rate is, and multiply the two together to see how much you should claim.
To help you work out your fuel tax credits, use our online calculator at www.ato.gov.au/fuelschemes.
If you need more information to decide whether fuel tax credits are for you:
- contact PJT on 07 5413 9300
- visit the ATO website at www.ato.gov.au/fuelschemes
- phone 1300720092 to request a copy of Fuel tax credits for business (NAT14584), or
- phone 132866 between 8.00am and 6.00pm, Monday to Friday.