Fuel tax credit rates increased on 1 August 2017. Some of these rates also changed on 1 July 2017, due to a change in the road user charge and an annual increase to excise duty rates on biofuels.
Rates change regularly. They are indexed twice a year, in February and August, in line with the consumer price index (CPI). Rates may also change in July for fuel used in a heavy vehicle for travelling on public roads. This is due to changes to the road user charge, which is reviewed annually. In July, rates also change due to an annual increase in excise duty rates on biofuels.
Use the fuel tax credit calculator each time you claim to save time and help get your claim right. It’s easy to use and has all the up-to-date rates, so there’s no need to find them before you work out a claim.
The ATO advises that on July 1, 2016, fuel tax credit rates for heavy vehicles that use taxable fuel such as diesel or petrol, and travel on public roads, increased to 14.5 cents per litre due to a decrease in the road user charge.
Biodiesel and fuel ethanol manufactured in Australia changed due to excise duty rates taking effect for biofuels.
See here for all the latest fuel rates.
The ATO says eligible business owners will need to apply the correct rate when they calculate the fuel tax credit claim on business activity statements.
Simplified fuel tax credits
The ATO also reminds business principals that if they claim less than $10,000 in fuel tax credits each year, they can now choose simpler ways to keep records and calculate claims.
For the BAS period ending March 31, 2016 and onwards, you can:
- use one rate in a BAS period – the rate that applies at the end of the BAS period
- work out your litres based on the cost of the fuel you purchased.
You can choose to use either or both of these methods that best suits your needs and can change them at any time. The ATO says a business does not need to register or advise it that you are using these methods.
It also advises that there are a range of documents that can be used to substantiate claims (which need to be kept for five years). Accepted documents can include:
- contractor statements
- financial institution business credit/debit account statement
- financial institution personal credit/debit account statement
- point-of-sale docket
- fuel supplier statement or invoice.