Fuel tax credit rate changes (from July 1).
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 13.6 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.
Fuel tax credit rates are indexed twice a year in line with the consumer price index. This occurs in February and August.
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.