Fuel tax credits
for business
Information about who can receive fuel tax credits
and how to claim them
Find out more
■
■ ato.gov.au/fuelschemes ■
■ phone 13 28 66 between 8.00am and 6.00pm,
Contents
About this guide
5
Recent changes 5
Can your business claim fuel tax credits?
6
About fuel tax credits
7
Introduction 7
Background of fuel tax credits 7
Rates and eligible fuels at a glance
8
01
Eligible fuels
9
Liquid fuels 9
Gaseous fuels 10
Fuels that are not eligible 10
02
Eligible activities
11
Road transport 11
All other business uses 12
Packaging or supplying fuel 14
03
Registering 16
Changing tax periods 16
Cancelling your registration 16
04
Working out your fuel tax credits
17
Records you must keep 17
Step 1: Work out the eligible quantity 18 Step 2: Check which fuel tax credit rate
applies for the fuel 18
Step 3: Work out the fuel tax credit amount 18
05
Claiming 19
When to claim 19
How to complete your claim 19
Contents
06
Adjustments and errors
21
Adjustments 21 Errors 22
Penalties and interest charges 22
Income tax and fuel tax credits 23
If you pay GST in instalments 23
Fuel tax credits and contractual arrangements 23
07
Public and private rulings
24
You may need a private ruling 24
Checklist 25
Calculation worksheet
26
About this guide
This guide provides you with the information you need about fuel tax credits for businesses.
Look for this symbol throughout this guide to find key information.
At this symbol, you will also find ‘more information’ boxes that will show further steps you may need to take, or supplementary information you may want to refer to. QC numbers can be used to search for publications on our website.
Find out more
Information about how to access our publications and services, see More information inside the back cover. You can also claim fuel tax credits if you are a:
■
■ householder using fuel to generate domestic electricity ■
■ non-profit organisation not registered for goods and
services tax (GST) and operating emergency vehicles or vessels.
These activities have separate claiming arrangements, refer to Fuel tax credits – domestic electricity generation and non-profit emergency vehicles or vessels (QC 18867).
Recent changes
From 1 July 2014
The carbon charge has been removed. This means for fuels acquired from 1 July 2014 you can:
■
■ claim more if you use the fuel in off-road activities ■
■ no longer claim fuel tax credits for
– non-transport gaseous fuels used in specified agriculture, fishing and forestry activities
– aviation fuels (aviation gasoline and aviation kerosene) if you had been declared by the Clean Energy Regulator as a designated opt-in person under the opt-in scheme. The opt-in scheme closed on 30 June 2014.
From 1 July 2014, you can also claim more for transport gaseous fuels.
Find out more
For current fuel tax credit rates, see ‘Rates and eligible fuels at a glance’ on page 8.
Can your business
claim fuel tax credits?
Most businesses can claim fuel tax credits – it is just the rate that varies, depending on what fuel you use and how you use it in your business activities.
Do you use fuel in your business (eg, in machinery,
plant, equipment or vehicles)? NO You are not eligible for fuel tax credits.
YES NO
Is your fuel only used in light vehicles of 4.5 tonnes
GVM or less travelling on a public road? YES You are not eligible for fuel tax credits. NO
Do you use the following fuels in your business?
■ ■ diesel ■ ■ petrol ■ ■ gaseous fuels (LPG, CNG, LNG) ■ ■ kerosene ■ ■ heating oil ■ ■ toluene ■ ■ fuel oil ■ ■ industrial solvents. NO
Aviation fuels and some alternative fuels are not eligible for fuel tax credits.
YES
You may be entitled to claim fuel tax credits for the fuel. The rate you can claim depends on the type of
fuel and how it was used. GO TO
More information about:
■
■ eligible fuels ■
■ eligible activities.
See links below. Aviation fuels are aviation gasoline and aviation kerosene.
Find out more
For more information about:
■
■ fuels eligible for fuel tax credits, see ‘Eligible fuels’
on page 9
■
■ activities eligible for fuel tax credits, see ‘Eligible
About fuel tax credits
Introduction
Fuel tax credits provide you with a credit for the fuel tax (excise or customs duty) included in the price of fuel you use for your business activities in:
■ ■ machinery ■ ■ plant ■ ■ equipment ■ ■ heavy vehicles.
The only fuels that are not eligible are:
■
■ aviation fuels (aviation gasoline and aviation kerosene) ■
■ fuels you use in light vehicles of 4.5 tonnes gross vehicle
mass (GVM) or less, travelling on public roads
■
■ fuel you acquired but did not use because it was lost, stolen
or otherwise disposed of
■
■ some alternative fuels, such as ethanol or biodiesel that have
already received a grant or subsidy.
Eligibility
You must be registered for both GST and fuel tax credits before you can make a claim. You claim fuel tax credits on your business activity statement (BAS). Fuel tax credits are also business income and need to be in your tax return at ‘Assessable Government industry payments’.
Depending on your circumstances, you may also need to meet an environmental criterion for heavy diesel vehicles if they were manufactured before 1 January 1996.
Find out more
For information about:■
■ activities eligible for fuel tax credits, see ‘Eligible
activities’ on page 11
■
■ registering for fuel tax credits, see ‘Registering’
on page 16
■
■ fuel tax credits as business income, see ‘Income
tax and fuel tax credits’ on page 23
■
■ the diesel vehicle environmental criteria, see
‘Environmental criteria for heavy diesel vehicles’ on page 12.
The fuel tax credit rates used in the examples in this guide are valid for the situation described and the reporting period. For the current rates, refer to Fuel tax credit rates and eligible fuels (QC 21459).
Background of fuel tax credits
On 1 July 2006, fuel tax credits were introduced for taxable liquid fuels used in heavy vehicles and in a range of other business activities.
From 1 July 2008, eligibility was expanded to include other taxable fuels (for example, petrol) in certain off-road activities (such as mining, agriculture, fishing, forestry, rail and marine). It was also expanded to include taxable fuels used in other business activities, machinery, plant and equipment. The rate was initially introduced as a half-rate. From 1 July 2012, it increased to a full fuel tax credit rate – but many of these rates were reduced by a carbon charge.
From 1 December 2011, fuel tax credits became available for gaseous fuels acquired, manufactured or imported for use in eligible off-road business activities and in the auxiliary equipment of heavy vehicles travelling on public roads. The rates for these fuels were introduced gradually.
Non-transport use of gaseous fuels was eligible for fuel tax credits in certain circumstances between 1 December 2011 and 30 June 2014.
From 1 July 2012 to 30 June 2014, a carbon charge generally applied to certain taxable fuels that were combusted. It varied for different fuels, depending on their carbon emissions rate. From 1 July 2013 to 30 June 2014, designated opt-in persons under the opt-in scheme were able to claim fuel tax credits:
■
■ for liquid fuels at a rate not reduced by the carbon charge ■
■ at a rate equal to the carbon charge for aviation fuels
(aviation gasoline and aviation kerosene).
From 1 July 2014, the carbon charge was repealed, increasing the rate for many fuels acquired from 1 July 2014 and used off public roads. The opt-in scheme also ended for designated opt-in persons.
Find out more
For more information about fuel tax credits for previous years, refer to Fuel tax credits for business (1 July 2012 – 30 June 2014) (QC 41272).
Rates and eligible fuels
at a glance
Fuel tax credit rates are subject to change due to periodic changes in the road user charge.
You need to use the rate that applied when you acquired the fuel – this may not necessarily be the rate in effect when you use the fuel or claim your fuel tax credits. However, for heavy vehicles travelling on public roads where the fuel is used:
■
■ for travelling on public roads, you need to use
the rate in effect at the beginning of the tax period covered by your BAS
■
■ to power auxiliary equipment of the heavy vehicle
travelling on public roads, you need to use the rate in effect when the fuel was acquired.
Work it out
For current and previous years’ rates and rates for eligible fuels, refer to Fuel tax credit rates and eligible fuels (QC 21459).
Use our free tools to get your claim right every time:
■
■ Fuel tax credit eligibility tool (QC 21085) helps you
determine which of your activities are eligible and what rates apply
■
■ Fuel tax credit calculator (QC 18866) helps you work
out how much you can claim
■
■ ATO app which includes the calculator. Download or
update the app from Google PlayTM, Windows Phone
Store or the Apple App Store.
Table:
Fuel tax credit rates for liquid and gaseous fuels from 1 July 2014
All rates are in cents per litre unless otherwise stated.
Business use Eligible fuel
Rate for fuel acquired from 1 July 2014
In heavy vehicles* (including emergency vehicles)
for travelling on public roads Liquid fuels – for example, diesel or petrol 12.003** Duty paid LPG, LNG or CNG – transport 0.0** All other business uses – on private roads, off public roads
and non-fuel uses. (Refer to page 13, for a list of examples.) Liquid fuels – for example, diesel or petrol 38.143 Duty paid LPG – transport 10.0 Duty paid LNG or CNG – transport 20.9 cents/kg LPG, LNG or CNG – non-transport 0.0 To power auxiliary equipment of a heavy vehicle* travelling
on public roads – such as fuel used to power a refrigeration unit or a concrete mixing barrel
Liquid fuels – for example, diesel or petrol 38.143 Duty paid LPG – transport 10.0 Duty paid LNG or CNG – transport 20.9 cents/kg Packaging fuels in containers of 20 litres or less
for uses other than in an internal combustion engine Mineral turpentine, white spirit, kerosene and certain other fuels 38.143
Supply of fuel for domestic heating Heating oil and kerosene 38.143
Supplying LPG:
■
■ by filling cylinders of 210kg capacity or less
for non-transport use
■
■ in tanks for residential use
Duty paid LPG – transport 10.0 LPG – non-transport 0.0
Notes to table
* A heavy vehicle is greater than 4.5 tonnes GVM. Diesel vehicles acquired before 1 July 2006 can equal 4.5 tonne GVM.
** This rate accounts for the road user charge which is subject to change and currently exceeds the rate of duty paid for gaseous fuels. It applies to fuel used in heavy vehicles for travelling on public roads.
You can claim fuel tax credits for any taxable fuel you acquired, manufactured or imported to use in carrying on your business. Fuel is taxable fuel if excise or customs duty must be paid on it.
Liquid fuels
Liquid fuels (that is, taxable liquid fuels) are:
■ ■ petrol
■ ■ diesel
■
■ other combustible fuels, such as
– kerosene – mineral turpentine – white spirit – toluene – heating oil – some solvents.
Fuel ethanol and biodiesel are not included because in most cases they have no effective fuel tax.
For some business activities, you can only claim for certain taxable fuels.
Find out more
For more information:■
■ find your business activity under ‘Eligible activities’
on page 11
■
■ see ‘Rates and eligible fuels at a glance’ on page 8.
Fuel used in aircraft
Aviation fuels are aviation gasoline and aviation kerosene. But there are instances when other liquid fuels, such as petrol or diesel, have been used to power an aircraft. If you acquire diesel or petrol and use it in an aircraft as part of your business activities, there may be circumstances when you can claim fuel tax credits.
If you are unsure whether you can claim fuel tax credits for fuel used in your aircraft, phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday. You may need to apply for a private ruling – for more information, see ‘You may need a private ruling’ on page 24.
Fuel blends
Diesel blends
You can claim fuel tax credits for blends of biodiesel and diesel; however the amount you can actually claim will depend on the amount of biodiesel in the blend. If your blend has 20% or less biodiesel (for example, B20) then it is considered to be 100% diesel and you can claim fuel tax credits on the entire amount.
Petrol blends
You can claim fuel tax credits for blends of ethanol and petrol; however the amount you can actually claim will depend on the amount of ethanol in the blend. If your blend has 10% or less ethanol (for example, E10) then it is considered to be 100% petrol and you can claim fuel tax credits on the entire amount.
Other blends
For other blends of two or more taxable fuels, including diesel blends containing more than 20% biodiesel and petrol blends containing more than 10% ethanol, the effective fuel tax paid is calculated based on the proportion of each taxable fuel.
Find out more
For more information, refer to:
■
■ Fuel tax credits – fuel blends (QC 25200) ■
■ Fuel tax credit rates and eligible fuels (QC 21459).
01 Eligible fuels
Gaseous fuels
If you use gaseous fuels (acquired from 1 December 2011) in eligible business activities, you may be entitled to fuel tax credits. Gaseous fuels are:
■
■ liquefied petroleum gas (LPG) ■
■ liquefied natural gas (LNG) ■
■ compressed natural gas (CNG).
Transport gaseous fuels are duty paid and include:
■
■ LPG or LNG intended for use in an internal combustion
engine of a motor vehicle or vessel (boat etc), either directly or by filling another tank connected to such an engine
■
■ CNG that is imported or compressed for use as a fuel
in a motor vehicle – excluding CNG that is compressed at a residential premises using equipment capable of compression at a rate not more than 10 kilograms (kg) of natural gas per hour and not for sale
■
■ all gaseous fuels for mixed use (that is, both transport
and non-transport use) or when the end use is unknown. From 1 July 2014, fuel tax credit rates for transport gaseous fuels increased.
Non-transport gaseous fuels are not duty paid and include:
■
■ LPG and LNG delivered only for use other than in an internal
combustion engine of a motor vehicle or vessel (for example, in residential heating or burner applications) or for use in forklifts. The invoice for non-transport LPG generally includes the statement: ‘Not to be used, or supplied, for transport use. Penalties apply.’
■
■ CNG imported or compressed only for use in forklifts
or not for use as a fuel in a motor vehicle. It also includes CNG compressed at a residential premises (including for use in a motor vehicle) using equipment capable of compression at a rate not more than 10 kg of natural gas per hour and not for sale.
Fuel tax credits are not available for non-transport gaseous fuels acquired from 1 July 2014 and used in agriculture, fishing and forestry activities.
Example:
LPG supplied for non-transport use
In August 2014, Universal LPG delivers bulk LPG to Outback Mining. Outback Mining uses the LPG to fuel their electricity generator.
Universal LPG has not paid excise duty on the LPG because it is supplied for non-transport use. The invoice from Universal LPG is marked ‘Not to be used, or supplied, for transport use. Penalties apply.’. Outback Mining is not entitled to claim fuel tax credits for their non-transport use to fuel the generator.
Conversion rates
If you measure LPG in kilograms or CNG in megajoules, standard conversion rates are provided to help you calculate your fuel tax credit entitlement. The rates are:
■
■ 1 kg of LPG = 1.885 litres of LPG ■
■ 1 megajoule of CNG = 0.01893 kg of CNG.
If your measuring equipment measures CNG other than in kilograms, refer to Excise (Mass of CNG) Determination 2012 (No. 1) at comlaw.gov.au for approved methods to convert cubic metres or megajoules to kilograms.
You can only use the conversion rate for LPG if you measure the LPG using equipment other than volumetric measurement equipment.
Example:
LPG conversion
Paul owns a farm that uses LPG to dry his grain. He lodges his BAS monthly and acquires his LPG by the kilogram. Due to his remote location he can only access transport LPG even though he will not be using it for transport.
In July 2014, he acquires 4,000 kg of transport LPG for use in his grain dryer.
Paul is able to claim fuel tax credits at the rate of 10 cents per litre for the duty paid LPG. So he can claim his fuel tax credits, Paul converts the 4,000 kg of eligible LPG to litres as follows:
4,000 kg × 1.885 = 7,540 litres of duty paid LPG Paul calculates his fuel tax credit entitlement for his July 2014 BAS as follows:
7,540 litres × 10.0 cents per litre = $754.00
Fuels that are not eligible
Some fuels are not eligible for fuel tax credits, including:
■
■ aviation fuels (aviation gasoline and aviation kerosene) ■
■ fuels you use in light vehicles of 4.5 tonnes GVM or less,
travelling on public roads – for example, a car, small van or taxi
■
■ fuel you acquired but did not use because it was lost,
stolen or otherwise disposed of
■
■ some alternative fuels, such as ethanol or biodiesel that
have already received a grant or subsidy.
You cannot claim fuel tax credits for fuel if no excise or customs duty is required to be paid on it.
For example, used oil that has only been subject to filtering and de-watering and used as fuel oil in burner applications is not eligible for fuel tax credits because no duty has been paid on it.
02
Eligible activities
The amount of fuel tax credits you are entitled to claim dependson what fuel you use and what business activity you use it in:
■
■ road transport, that is, vehicles with a GVM greater than
4.5 tonnes travelling on public roads (diesel vehicles you acquired before 1 July 2006 can equal 4.5 tonnes GVM) when the fuel is used
– for travelling on public roads
– to power auxiliary equipment of the heavy vehicle
■
■ all other business uses on private roads, off public roads and
for non-fuel uses, such as, agriculture, mining, construction and manufacturing
■
■ packaging or supplying fuel, including
– packaging certain liquid fuels in containers of 20 litres or less
– filling transport LPG into cylinders of 210 kg capacity or less for supply for non-transport use
– supplying transport LPG for transfer into tanks for residential use
– supplying or distributing kerosene or heating oil fuel for domestic home heating.
Road transport
You can claim fuel tax credits for taxable fuels you use in heavy vehicles, including heavy emergency vehicles, travelling on public roads if the vehicle meets all the following conditions:
■
■ It is used in carrying on a business. ■
■ It has a GVM greater than 4.5 tonnes – diesel vehicles
acquired before 1 July 2006 can equal 4.5 tonnes GVM.
■
■ Diesel vehicles meet any one of the environmental criteria.
The fuel tax credit rate you use depends on when you acquired the fuel and if the fuel was used in a heavy vehicle:
■
■ for travelling on public roads ■
■ to power the auxiliary equipment of the heavy vehicle while
travelling on public roads.
A heavy vehicle has a GVM greater than 4.5 tonnes – diesel vehicles acquired before 1 July 2006 can equal 4.5 tonnes GVM.
The GVM of a vehicle is the GVM accepted by the authority that registered the vehicle. Trailers cannot be included in the GVM of a rigid vehicle. For prime movers, the GVM is the gross combination mass – that is, the mass of the vehicle and the trailer.
If your activity is not listed here, such as fuel used in vehicles on private roads, it may be eligible under another activity with a different fuel tax credit rate.
Fuel used for travelling on public roads
Fuel is used for travelling when it is used for:
■
■ propelling the vehicle along public roads, including stopping
or idling in the course of the journey
■
■ powering the functions of the vehicle that are for the purpose
of travelling, such as the use of lights, brakes, power-steering and windscreen wipers.
The fuel tax credit rate for this fuel is reduced by the road user charge, which is subject to change.
The road user charge reduces any fuel tax credits to nil for transport gaseous fuels used in heavy vehicles for travelling on public roads.
You can convert the road user charge rate to cents per kilogram for LNG and CNG by multiplying it by 1.333.
02 Eligible activities
Example:
Road user charge
Jim’s Removalists operates four 5-tonne diesel trucks. All the fuel Jim acquires for the trucks is used for travelling in public roads.
In July 2014, Jim’s Removalists acquires 10,000 litres of diesel to use in their trucks.
With rates changing, Jim referred to page 8 for the correct fuel tax credit rate. The rate in July 2014 for fuels used in heavy vehicles for travelling on public roads is 12.003 cents per litre (which is 38.143 cents per litre, minus the road user charge of 26.14 cents per litre). When lodging his monthly BAS for July 2014, Jim’s fuel tax credit claim is $1,200:
10,000 litres × 12.003 cents per litre = $1,200.30
Fuel used to power auxiliary equipment
Liquid or gaseous fuel you use to power auxiliary equipment of heavy vehicles travelling on public roads is not reduced by the road user charge. This fuel use is considered to be unrelated to a vehicle’s travel along a public road, such as powering:
■
■ the mixing barrel of a concrete truck ■
■ garbage bin lifters and compacting mechanisms
of a garbage truck
■
■ the refrigeration unit of a vehicle that transports
temperature-sensitive goods
■
■ air-conditioning of a commercial bus or coach
for passenger comfort
■
■ winches and towing equipment of a tow truck.
The fuel used to power the auxiliary equipment may be sourced from a separate fuel tank or from the tank that fuels the main engine. The auxiliary equipment may also take its power from the main engine (known as ‘power take-off’), which in turn increases the fuel used.
Fuel used in auxiliary equipment does not include fuel you use in mobile equipment, such as forklifts and bobcats. This type of plant or equipment may be eligible under ‘All other business uses’ on page 12.
For fuel you use:
■
■ in heavy vehicles for travelling on public roads,
you need to use the rate in effect at the beginning of the tax period covered by your BAS
■
■ to power auxiliary equipment of heavy vehicles
travelling on public roads, you need to use the rate in effect on the day you acquired the fuel. For the latest rates for heavy vehicles travelling on public roads, see ‘Rates and eligible fuels at a glance’ on page 8.
Environmental criteria for heavy diesel
vehicles
If you use a heavy diesel vehicle on a public road and the vehicle was manufactured before 1 January 1996, the vehicle must meet one of the following criteria before you can claim fuel tax credits – it must:
■
■ be registered in an audited maintenance program that
is accredited by the Transport Secretary
■
■ meet Rule 147A of the Australian Vehicle Standards Rules
1999 (the ‘DT80’ test)
■
■ comply with a maintenance schedule endorsed by the
Transport Secretary.
If your heavy vehicle was manufactured before January 1996 but has been retrofitted with an engine manufactured on or after 1 January 1996, the engine must meet all of the following criteria:
■
■ be certified to the Australian Design Rule (ADR) 70/00 (or
later) emission standard (currently ADR 80/00 or ADR80/01)
■
■ be properly installed ■
■ retain all the original (or equivalent) components.
If you use farm vehicles mainly on an agricultural property to carry on a primary production business, you do not have to meet any of these criteria.
Find out more
For more information, refer to:
■
■ Fuel tax credits – travel and other activities for heavy
vehicles (QC 22974)
■
■ Fuel tax credits – heavy vehicles and auxiliary
equipment (QC 26770)
■
■ Fuel tax credits – criteria for heavy diesel vehicles
(QC 18686).
All other business uses
You can claim fuel tax credits for taxable fuels you use in business activities on private roads, off public roads and for non-fuel uses. When working out your fuel tax credit use the rate in effect when you acquired the fuel.
You cannot claim fuel tax credits for fuels used for private use – including light vehicles (for example, utes).
02 Eligible activities
Examples of these activities
The following are examples of eligible business activities (this is not a complete list):
■ ■ agriculture ■ ■ fishing ■ ■ forestry ■ ■ mining ■
■ marine and rail transport ■
■ nursing and medical services ■
■ burner applications ■
■ electricity generation by commercial generator plant,
stationary generator or a portable generator
■ ■ construction ■ ■ manufacturing ■ ■ wholesale/retail ■ ■ property management ■ ■ landscaping ■ ■ dredging ■ ■ panel beating ■ ■ greenhouse heating ■ ■ cement kilns ■ ■ quarrying ■ ■ industrial furnaces ■
■ non-fuel uses, including
– fuel you use to clean machinery parts or drums – diesel you spray directly onto a road as a sealant – fuel you use as a mould release
– fuel you use as an input or ingredient – for example, printer inks, paint and adhesives.
The rates for fuel used in many of these activities were reduced by the carbon charge from 1 July 2012 to 30 June 2014. For more information on the carbon charge, refer to Fuel tax credits for business (1 July 2012 to 30 June 2014) (QC 41272).
Non-fuel use
We may issue a determination that a blend of a fuel with a non-fuel product does not constitute a non-fuel. If your blend is subject to such a determination, you may be entitled to fuel tax credits for the fuel component you use in making that blend.
Find out more
For more information, refer to Fuel Tax (Fuel Blends) Determination 2006 (No. 3) at law.ato.gov.au
Example:
Agriculture
Marilyn uses a diesel-powered tractor to cart materials around her vineyard. She also uses a petrol-fuelled ride-on mower and whipper snipper to maintain her vineyard.
The fuel Marilyn uses for both activities is eligible for fuel tax credits. Marilyn uses the rate for ‘All other business uses’ on page 8 when working out her fuel tax credits for the fuels she acquires from 1 July 2014.
Marilyn buys 3,000 litres of diesel and 1,000 litres of petrol in July 2014 for use in her tractor and to maintain her vineyard. The rate she uses to calculate her fuel tax credits for the 4,000 litres of fuel is 38.143 cents per litre.
Example:
Construction
Andreas’ company is contracted to do some earthworks for the local council on sites. He can claim fuel tax credits for the petrol he uses in his bobcat and his compactor, using the rate for ‘All other business uses’ on page 8. Andreas purchased 5,000 litres of petrol in July 2014. The rate he uses to calculate his fuel tax credits for this fuel is 38.143 cents per litre.
Example:
Manufacturing
Wesley operates a diesel forklift to move materials and products around his steel fabrication workshop. He can claim fuel tax credits for the diesel he uses in his forklift, using the rate for ‘All other business uses’ on page 8. For example, Wesley can claim 38.143 cents per litre for diesel he acquires in July 2014 and uses in his forklift.
Example:
Landscaping and property
management
Kylie owns a landscaping business and does contract work for property management agents. She can claim fuel tax credits for the petrol she uses in her brush-cutter, ride-on lawnmower and other equipment for both landscaping and her contract work.
Kylie uses the rate for ‘All other business uses’ on page 8 when working out her fuel tax credits.
02 Eligible activities
Example:
Quarrying
Michael’s Sand Supplies Pty Ltd quarries sand to use in landscaping. He can claim fuel tax credits for the diesel he uses in his excavators and other quarrying equipment. Michael uses the rate for ‘All other business uses’ on page 8 when working out his fuel tax credits for the fuels he acquires from 1 July 2014.
Example:
Burner use
Pauline operates a foundry and uses diesel to run her furnace. She can claim fuel tax credits for the diesel, using the rate for ‘All other business uses’ on page 8. For example, Pauline can claim 38.143 cents per litre for diesel she acquires on 10 July 2014 and uses to run her furnace.
Example:
Generating electricity
Sofia operates a caravan park and supplies electricity for residents to use. She can claim fuel tax credits for the diesel she used in her stationary generator using the rate for ‘All other business uses’ on page 8.
Example:
Non-fuel uses
Ted’s Paint Supplies purchases toluene (a fuel) to use in manufacturing paint. The price of the fuel includes excise duty.
Ted blends the toluene with other non-fuel products to make the paint that he then sells to his customers. He is entitled to fuel tax credits on the toluene because the final product (the paint) cannot be used as a fuel in an internal combustion engine.
Ted can claim fuel tax credits for the toluene he used to manufacture paint using the rate for ‘All other business uses’ on page 8.
Find out more
For the latest rates for these activities, see ‘Rates and eligible fuels at a glance’ on page 8.
For more information about non-fuel uses, refer to Fuel not used in an internal combustion engine (QC 18872).
Packaging or supplying fuel
When working out your fuel tax credits, use the rate in effect when you acquired the fuel. For the latest rates, see ‘Rates and eligible fuels at a glance’ on page 8 .
Packaging liquid fuels in containers
of 20 litres or less
You can claim fuel tax credits when you package mineral turpentine, white spirit, kerosene and certain other liquid fuels (prescribed by the regulations) in containers of 20 litres or less for uses other than in an internal combustion engine.
Consumers may purchase the products for a variety of uses, including cleaning, lamp lighting and other general household uses.
The products’ packaging (including any images or text forming part of the packaging) must not suggest or imply that the fuel can be used in an internal combustion engine.
Example:
Packaging liquid fuels
Acme Painters Supplies buys duty paid turpentine in bulk. They then package it into 2 litre containers ready for sale for use other than in an internal combustion engine. They can claim fuel tax credits because duty had been paid on the turpentine and the packaged product is not intended for use in an internal-combustion engine.
Filling LPG into cylinders of 210 kg
capacity or less for supply for
non-transport use
You may be able to claim fuel tax credits for transport LPG when you supply it in or into cylinders of 210 kg capacity or less for use other than in an internal combustion engine of a motor vehicle or vessel (the exclusion for motor vehicles does not apply to forklifts used mainly off road).
If you purchase non-transport gaseous fuel, that is, gaseous fuel that is not duty paid, you must not use or supply that fuel for transport use.
02 Eligible activities
Example:
Supplying transport LPG
In July 2014, Gas Tank Ltd acquires bulk LPG for both transport and non-transport use, with duty paid at the transport rate of 10.0 cents per litre. They package some of it into small 9 kg LPG gas bottles that they sell to a service station. The service station then sells the LPG gas bottles to its customers, primarily for BBQ use. Gas Tank Ltd is entitled to fuel tax credits at a rate of 10.0 cents per litre for the LPG they supply. Neither the service station nor its customers can claim fuel tax credits for the LPG gas bottles because they have already been claimed by the supplier.
Supplying transport LPG for transfer
into tanks for residential use
You may be able to claim fuel tax credits if you supply transport LPG (duty paid at the transport rate) into tanks at residential premises for non-transport use at those premises.
If you purchase non-transport LPG (no excise duty applied), you must not use or supply that fuel for transport use. There is no fuel tax credit entitlement on this fuel as no duty has been paid on the fuel.
You cannot store non-transport LPG in the same tank as transport LPG unless you have an excise licence allowing you to do so.
Example:
Supply of transport LPG into tanks
for residential use
Bright Gas Ltd purchase transport LPG and supply it into tanks where the fuel is specifically for residential use. Because their LPG is duty paid and it is not being used for transport use, they can claim fuel tax credits. The residential consumer cannot claim fuel tax credits because the fuel tax credits have already been claimed further up the supply chain by Bright Gas Ltd.
Supplying or distributing fuel for
domestic home heating
If you distribute heating oil or kerosene for residential heating, you can claim fuel tax credits so that individual users do not have to claim them. You must have a reasonable belief that the fuel will only be used for domestic home heating.
Example:
Supply of fuel for domestic
home heating
Mark purchases bulk heating oil at a cost that includes excise duty. He sells and distributes the heating oil to various locations in Tasmania. He delivers to households for use in heating, and also to a number of businesses, including a bakery that uses the heating oil to fire its ovens.
Mark is entitled to claim fuel tax credits on the heating oil he sells to the households. He can take the fuel tax credit entitlement into account when setting the price of the heating oil.
Mark is not entitled to claim fuel tax credits for the heating oil he sells to businesses such as the bakery because each business is entitled to claim fuel tax credits in their own right.
Find out more
For more information about eligible activities associated with non-combustible use, refer to:
■
■ Fuel not used in an internal combustion engine
(QC 18872)
■
■ Fuel sold for domestic home heating (QC 22542) ■
■ phone us on 13 28 66 between 8.00am and 6.00pm,
03
Registering
Before you can claim, your business must be registeredfor both of the following:
■ ■ GST
■
■ fuel tax credits.
If you are already registered for GST but have not yet registered for fuel tax credits, you can do this at any time without affecting your GST tax period – whether it is monthly, quarterly, or annual.
The registration process is slightly different depending on whether it is for an existing business or a new business.
Find out more
For more information, refer to Registering for fuel tax credits – business (QC 18993).
Changing tax periods
Some businesses may consider changing their fuel tax credit period so they can access their fuel tax credits more frequently. However, this also involves changing your GST tax period, which might impact on your other reporting obligations. We recommend you think this through carefully or seek the advice of your tax or business adviser.
Find out more
For more information, refer to Options for reporting and paying GST (QC 39643).
Cancelling your registration
If your circumstances change and you are no longer eligible to claim fuel tax credits, you should cancel your registration.
Find out more
For more information, refer to Registering for fuel tax credits – business (QC 18993).
04
Working out your
fuel tax credits
Before you can claim your fuel tax credits on your BAS, you must know what records you need to keep and how to work out what you are entitled to.
Work it out
Use our free tools to get your claim right every time:
■
■ Fuel tax credit eligibility tool (QC 21085) ■
■ Fuel tax credit calculator (QC 18866) ■
■ ATO app includes the calculator – download or update
it from Google PlayTM, Windows Phone Store or the
Apple App Store
■
■ Fuel tax credits calculation worksheet (QC 18871).
Find out more
To help you get your claims right, refer to Fuel tax credits – five tips to avoid common errors (QC 19369).
There are three steps to calculate your fuel tax credits:
■
■ Step 1: Work out how much fuel (liquid or gaseous) you
acquired for each business activity.
■
■ Step 2: Check which fuel tax credit rate applies for each
taxable fuel used in each of your activities.
■
■ Step 3: Work out the amount of your fuel tax credits in
dollars by multiplying the eligible quantity of fuel by the relevant fuel tax credit rate (step 1 × step 2).
The amount of fuel tax credits you can claim depends on what fuel you use, when you acquired it, and how you use the fuel. You will need to do separate calculations for the different fuel tax credit rates. Rates can differ for business uses, fuel type and when the fuel was acquired.
Records you must keep
To work out your fuel tax credits accurately and to support your claims, you must keep complete and accurate records. It is important to keep good records. You need to show the type and quantity of fuel you acquired and the business activities you use it in, such as whether it was for travelling on a public road or in other activities.
Find out more
For more information about the records you must keep to support your claims, refer to:
■
■ Fuel tax credits – keeping records and calculating
eligible quantities (QC 18683)
■
■ Fuel Tax Determination FTD 2006/2 Fuel tax:
what records are required to be kept by taxpayers to substantiate a claim for a fuel tax credit?
Tax invoices
A tax invoice should include enough information to enable the following to be determined:
■
■ that the document is intended to be a tax invoice ■ ■ date of purchase ■ ■ purchaser’s name ■ ■ type of fuel ■ ■ quantity purchased ■ ■ price ■ ■ supplier’s name ■ ■ supplier’s ABN ■ ■ GST payable.
If you cannot support your claims with adequate records, you may have to repay all or part of the fuel tax credits you have received. You may also incur penalties.
04 Working out your fuel tax credits
If the first page of your invoice for LPG includes the words ‘Not to be used, or supplied, for transport use. Penalties apply’, you cannot use the fuel for transport use. You cannot claim fuel tax credits for non-transport gaseous fuel you acquire from 1 July 2014.
Find out more
For more information, refer to When you need a tax invoice (QC 22433).
Step 1: Work out the
eligible quantity
Work out how much fuel (liquid or gaseous) you acquired for each business activity.
Check the quantity of fuel you have acquired (litres or kilograms) and work out how much of that fuel is eligible for fuel tax credits. You must exclude any fuel:
■
■ used in an ineligible activity – for example, in vehicles
of 4.5 tonnes GVM or less travelling on public roads
■
■ if the fuel tax credits have already been claimed earlier
in the supply chain (for example, claimed by the packager)
■
■ you acquired, but did not use because it was lost, stolen
or otherwise disposed of.
If you measure LPG in kilograms, or CNG in megajoules, standard conversion rates are provided to help you work out your fuel tax credit entitlement. The measurements are:
■
■ 1 kg of LPG = 1.885 litres of LPG ■
■ 1 megajoule of CNG = 0.01893 kg of CNG.
There are a number of apportionment methods and
measures you can use to work out the eligible quantity of fuel. The common methods are the:
■
■ constructive method, where you add up all the eligible
quantities of each fuel type and activity
■
■ deductive method, where you subtract any ineligible fuel,
such as fuel you used in small vehicles on a public road, from your total fuel
■
■ percentage use method, where you determine a reliable
percentage of eligible fuel usage for a sample period and apply this over a number of tax periods
■
■ estimated use method, where you make a fair and
reasonable estimate of the quantity of fuel you acquire for use in a tax period for
– eligible and ineligible activities
– multiple activities that have different fuel tax credit rates.
Find out more
For more information about working out eligible quantities of fuel and the various calculation methods and measures, refer to Fuel tax credits – keeping records and calculating eligible quantities (QC 18683).
Step 2: Check which fuel tax
credit rate applies for the fuel
The amount of fuel tax credits you can claim depends on the fuel you use, when you acquired it and how you use it in your business.
When working out your fuel tax credits, use the rate that applied when you acquired the fuel – this may not necessarily be the rate in effect when you use the fuel or claim your fuel tax credits.
However, for heavy vehicles travelling on public roads where the fuel is used:
■
■ for travelling on public roads, use the rate in effect
at the beginning of the tax period covered by your BAS
■
■ to power auxiliary equipment of the heavy vehicle travelling
on public roads, use the rate in effect when the fuel was acquired.
Get it done
For current and previous years’ rates, refer to Fuel tax credit rates and eligible fuels (QC 21459).
There are time limits for claiming fuel tax credits – generally, you must claim within four years from the end of the tax period in which the fuel was acquired.
Step 3: Work out the fuel
tax credit amount
Work out the amount of your fuel tax credits in dollars. You do this by multiplying the eligible quantity of fuel for each activity by the relevant fuel tax credit rate when you acquired the fuel (step 1 x step 2). You must divide the result by 100 to convert it into dollars. Claim the whole dollar amount on your BAS. Do not include cents.
When you have worked out the dollar amount for each activity, add all these figures together to arrive at a total for each tax period, then claim this amount by writing it at label 7D on your BAS, see ‘Claiming’ on page 19.
Claiming
05
You claim fuel tax credits on your BAS in the same way as you claim GST credits.
For GST group representatives and other businesses with complex structures, the claiming arrangements vary. They are:
■
■ GST groups – the representative member of the group
claims fuel tax credits on behalf of the group.
■
■ GST branches – each branch claims fuel tax credits
separately from the parent entity.
■
■ GST joint ventures – the operator claims fuel tax credits
on behalf of the participants.
If you are claiming fuel tax credits for domestic electricity generation and for eligible business activities, you must claim all of your fuel tax credits on your BAS.
If you pay GST in instalments, you can also claim fuel tax credits.
For information about how to claim fuel tax credits if you pay GST in instalments, see ‘If you pay GST in instalments’ on page 23.
When to claim
You can claim fuel tax credits at the time you acquire, manufacture, or import the fuel into Australia.
If you account for GST on a cash basis, you should claim your fuel tax credits in the BAS period you pay for the fuel. If you account for GST on a non-cash basis, you should claim your fuel tax credits in the BAS period you receive your invoice for the fuel.
Find out more
For more information about methods of accounting, refer to Choosing an accounting method (QC 22440).
How to complete your claim
On your BAS, you must record at fuel tax credit label 7D:
■
■ your fuel tax credit entitlement for the tax period ■
■ any adjustments attributed to the tax period that will increase
your entitlement to fuel tax credits.
If you need to make an adjustment in the tax period that will decrease your entitlement to fuel tax credits, you must include this at fuel tax credit label 7C.
Only record the whole dollar amount – leave off any cents. You must claim any outstanding fuel tax credits within four years of the end of the tax period to which they apply. If you made a credit error in a BAS for a tax period that started on or after 1 July 2012, you must correct the error on a BAS within the period of review – that is, four years from the day after you lodge the BAS in which the error occurred.
You can claim outstanding fuel tax credits using your current BAS, rather than revising the earlier BAS for the period in which the error occurred.
Your fuel tax credits at label 7D will be offset by us against any fuel tax credit over claim (label 7C) for the current period, as well as any other outstanding tax obligations or some Australian Government debts you may have.
Find out more
For more information, refer to:
■
■ Fuel tax credits – making adjustments and correcting
errors (QC 18882)
■
■ Fuel tax credits – how to complete your business
05 Claiming
If you register to claim your fuel tax credits online, we will send you software with security tools to ensure the information you send via the internet remains secure and is authenticated by electronic signature. After you install this software on your computer, you can:
■
■ access your personalised electronic BAS ■
■ complete your claim as you would for a paper claim ■
■ transmit the completed form to us.
Find out more
For more information, refer to Business Portal (QC 17468).
Claim using a paper BAS
Once you are registered for both GST and fuel tax credits, your next BAS will include the fuel tax credit labels. You must claim your fuel tax credits on your BAS in the same way you claim your GST credits.
Your BAS must be signed by a person authorised to act on behalf of the business.
Claim by your registered tax agent
or BAS agent
Your registered tax agent may lodge your claim online using the Tax Agent Portal or the electronic lodgment service (ELS). BAS agents may use the BAS Agent Portal to lodge your BAS online.
Self-assessment
You must self-assess your fuel tax credit claims. This means you are responsible for:
■
■ assessing your own eligibility for fuel tax credits ■
■ working out the dollar amount ■
■ keeping records that support your claims.
We are treated as having made an assessment of your net fuel amount, on the day you lodge your BAS, worked out in accordance with the information stated in your BAS. Under self-assessment your BAS is treated as being a notice of assessment issued on the day the BAS is given to us. No other notice of assessment will be issued.
Find out more
For more information, refer to Guide to self-assessment for indirect taxes (QC 25975).
How to submit your claim
You can claim fuel tax credits by lodging your BAS in one of three ways. You can:
■
■ lodge online through the Business Portal ■
■ claim using a paper BAS ■
■ through your registered tax agent or BAS agent.
Lodge online
If you are registered to deal with us online, you can lodge your BAS through the Business Portal. You can also use the portal to update business registration details and perform a range of other transactions online.
If you want to register to claim your fuel tax credits online, all you need is an ABN and an AUSkey (which ensures the security and privacy of your information is protected).
Get it done
To register, refer to Register to use our online services (QC 20141).
06
Adjustments
and errors
Sometimes you may need to change the amount of fuel tax credits you have claimed – you can do this by making an adjustment or by correcting an error.
These arrangements only apply to fuel tax credit adjustments and errors.
Adjustments
An adjustment is necessary when you have already claimed fuel tax credits based on your intention to use that fuel in a certain way, and you end up using some of that fuel in a different way that gives a different fuel tax credit amount.
If you must make an adjustment, you should account for it in the period you actually use the fuel for another purpose.
Example:
Adjustment
Mia is a primary producer who uses diesel in agricultural activities. On 1 June 2014, she acquires 10,000 litres of diesel to use in her combine harvester. The full fuel tax credit rate for diesel is 38.143 cents per litre, so Mia claims fuel tax credits of $3,814 on her BAS for the quarterly tax period ending 30 June 2014.
During August, Mia uses 1,000 litres of the diesel in her one-tonne utility that she uses for driving to and from town. Because she is not entitled to claim fuel tax credits for this fuel (because it is used in a vehicle with a GVM of 4.5 tonnes or less travelling on public roads), Mia must make a fuel tax credit adjustment on her September BAS.
Fuel used to power auxiliary equipment
of a heavy vehicle
Special rules apply if you are amending previous fuel tax credit claims for fuel used to power auxiliary equipment of a heavy vehicle travelling on a public road, if both the following apply:
■
■ You previously claimed for liquid fuels (such as, diesel or
petrol) using a fuel tax credit rate that was reduced by the road user charge, or you didn’t claim for gaseous fuels because the road user charge reduced your entitlement to nil.
■
■ The amendment is within the time limits, which are generally
four years from the end of the tax period in which the fuel was acquired.
Find out more
For more information, refer to:
■
■ Fuel tax credits – making adjustments and correcting
errors (QC 18882)
■
■ Fuel tax credits – heavy vehicles and auxiliary
06 Adjustments and errors
Errors
An error occurs when you made a mistake in working out your fuel tax credit claim on an earlier BAS. The error can result in you claiming more fuel tax credits than you were entitled to (debit error), or less fuel tax credit than you were entitled to (credit error). If you realise you made a mistake you must correct it.
Errors might be the result of a preparation error – for example, you may have:
■
■ transcribed the wrong final figure into fuel tax credit label 7D ■
■ worked out your entitlement using the wrong fuel tax
credit rate
■
■ claimed all of the fuel you acquired, instead of just the
portion of fuel that is eligible – for example, you may have claimed for the fuel used in all your vehicles, instead of just the heavy vehicles.
Example:
Debit error
When Michelle was working out her quarterly BAS, she realised that when she had completed her previous BAS she had wrongly claimed fuel tax credits for the fuel she used in the ute she drives on public roads. This meant her calculations were wrong and she had entered the wrong amount at label 7D on her BAS.
Michelle works out that she had accidentally over-claimed $70 in fuel tax credits, so she includes the $70 at label 7C on her current BAS.
In some circumstances, you can correct errors on your current BAS, but there are rules and limits about when you can do this.
Find out more
For more information about the rules and limits when correcting errors, refer to Fuel tax credits – making adjustments and correcting errors (QC 18882).
Penalties and interest
charges
You may be liable to pay a penalty and the general interest charge (GIC) in either of the following circumstances:
■
■ You are paid an amount of fuel tax credits that you
are not entitled to.
■
■ You do not adjust your fuel tax credit claims when
you become aware an adjustment is required. You will not incur penalties or GIC if you:
■
■ adjust fuel tax credit claims in your current BAS when
you become aware of them
■
■ correct errors to your fuel tax credit claims in your current
BAS in line with the conditions set out in Fuel tax credits – making adjustments and correcting errors.
You can claim the GIC as an income tax deduction.
Find out more
For more information about the rules and limits when correcting errors, refer to Fuel tax credits – making adjustments and correcting errors (QC 18882).
06 Adjustments and errors
Income tax and fuel
tax credits
Fuel tax credits are:
■
■ part of your business income, so you need to include
them in your tax return, at ‘Assessable government industry payments’
■
■ pay as you go (PAYG) instalment income. You need
to include your fuel tax credits as part of your PAYG instalment income at label T1 on your BAS.
Find out more
For more information, refer to PAYG instalments – how to complete your activity statement (QC 27149).
If you pay GST
in instalments
If you pay your GST in instalments, you can claim fuel tax credits on a quarterly basis. After you register for fuel tax credits, you will receive quarterly BAS, regardless of whether you pay two or four GST instalments for the financial year, instead of receiving an instalment notice.
You can only claim fuel tax credits on your BAS – you cannot claim them on your annual GST return.
Your fuel tax credits are not included in your pre-printed GST instalment amount at label G21. You must report your actual fuel tax credits separately at label 7D on your BAS.
Instalment notices
Once you register for fuel tax credits, instead of receiving an instalment notice with no lodgment requirement, you will receive a quarterly BAS – you lodge this to claim your fuel tax credits. You only need to lodge a BAS if you want to claim fuel tax credits for the period or if you have an adjustment to make for a fuel tax credit over-claim.
Find out more
For more information about claiming fuel tax credits if you receive an instalment notice, refer to Fuel tax credits and GST instalments (QC 21305).
Fuel tax credits and
contractual arrangements
Service and supply contracts may outline the following:
■
■ which party to the contract will claim the fuel tax credits
on eligible fuel use
■
■ if any increase in fuel costs can be passed on and/or any
reductions can be passed back following receipt of fuel tax credits; for example, using rise and fall provisions. Only one entity is entitled to claim fuel tax credits. Including details in the contract of how fuel costs are to be managed may assist in determining which entity should claim the fuel tax credits.
Even though a contract may state that one party can claim fuel tax credits, you are only entitled to fuel tax credits if you have acquired and used the fuel in your business.
Find out more
If you are not sure if you are entitled to a fuel tax credit:
■
■ refer to Fuel Tax Ruling FTR 2007/1 Fuel tax: the
meaning of ‘acquire’, ‘manufacture’ and ‘import’ in the expression ‘taxable fuel that you acquire or manufacture in, or import into, Australia to the extent that you do so for use in carrying on your enterprise’ in the Fuel Tax Act 2006
■
■ apply for a private ruling, refer to How to apply for
07
Public and private
rulings
We have a public rulings program that provides our view on a number of fuel tax credit topics, such as:
■
■ vehicle and equipment hire arrangements – Fuel Tax
Ruling FTR 2009/1 Fuel tax: entitlement to a fuel tax credit under section 41-5 of the Fuel Tax Act 2006 in a vehicle or equipment hire arrangement
■
■ incidental travel on a public road and the road user charge
– Fuel Tax Ruling FTR 2008/1 Fuel tax: vehicle’s travel on a public road that is incidental to the vehicle’s main use and the road user charge
■
■ the meaning of ‘acquire’, ‘manufacture’ and ‘import’
– Fuel Tax Ruling FTR 2007/1 Fuel tax: the meaning of ‘acquire’, ‘manufacture’ and ‘import’ in the expression ‘taxable fuel that you acquire or manufacture in, or import into, Australia to the extent that you do so for use in carrying on your enterprise’ in the Fuel Tax Act 2006. If this guide or any related fact sheets or public rulings do not answer your specific questions about your entitlement to fuel tax credits, you can apply to us for a private ruling.
You may need a private ruling
If your circumstances are complex or confusing, you can apply to us for a private ruling that will clarify how fuel tax credits apply to you. Once you have read this guide and any related web information or public rulings, you can apply for a private ruling if you still have a specific question about your entitlement.
Find out more
For more information about rulings:
■
■ refer to Fuel tax credits public rulings on law.ato.gov.au ■
■ refer to How to apply for a private ruling (QC 17010) ■
■ phone us on 13 28 66 between 8.00am and 6.00pm,
Monday to Friday
■
■ write to us at
Australian Taxation Office PO Box 3001
Checklist
Registering
■
■
Are you registered for GST? See page 16.■
■
Are you registered for fuel tax credits? See page 16.■
■
If not, you cannot claim fuel tax credits.Eligibility
■
■
Do you use eligible fuel in an eligible activity? See pages 9 and 11.■
■
Do you use vehicles more than 4.5 tonnes GVM on public roads? See page 11.■
■
Diesel vehicles acquired before 1 July 2006 can equal 4.5 tonnes.■
■
Does your diesel vehicle meet the environmental criteria? See page 12.■
■
You can use the Fuel tax credit eligibility tool (QC 21085) to help you determine which of your activities are eligible and the current rates that apply.Record keeping
■
■
Have you kept detailed records of the quantity of fuel you have acquired? See page 17.■
■
Do your records show details of your fuel use? See page 17.■
■
Do your records prove your eligibility for fuel tax credits? See page 17.■
■
Do your records establish the basis and method you used to work out your entitlement? See page 17.Claiming
■
■
Have you claimed your fuel tax credits on your business activity statement? See page 19.■
■
Have you only claimed for eligible fuel used in eligible activities? See pages 9 and 11.■
■
Have you claimed using the correct rate? See page 8.■
■
Have you claimed the fuel tax credits in the correct period? See page 19.■
■
Are you using the correct calculation method to work out your entitlement? See page 18.■
■
Have you submitted your claim using the most suitable lodgment method? See page 20.■
■
If you are part of a GST group, are you the GST representative member who can claim on behalf of the group? See page 19.Fuel tax credits calculation worksheet
Business activity statement period / / to / /
Eligible
fuel type Fuel acquired for eligible business use (litres or kilograms) (A)
Business fuel
use Date fuel acquired Fuel tax credit rate when you acquired the fuel* (cents per litre / kilogram) (B)
Fuel tax credit amount ($)
Amount must be converted to dollars. (C) = (A × B ÷ 100) Example:
Diesel
9,250 Construction equipment used on sites (eg, front-end loader 18/07/2014 38.143Use the rates from the table on page 8 or check online for blended fuels
. ,
$
3 5 2 8 2
2
Do not include this figure inyour total below. . , $ . , $ . , $ . , $ . , $ . , $ . , $ . , $ . , $ . , $ Once you have calculated the amount for each rate in column (C), add
all these figures together to work out the total for the tax period, then claim the whole dollar amount by writing it at label 7D on your BAS.
TOTAL
, $
* For fuel used in heavy vehicles for travelling on public roads, you need to use the rate in effect at the beginning of the tax period covered by your BAS. Day Month Year Day Month Year
© Australian Taxation Office for the Commonwealth of Australia, 2014
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
Published by Australian Taxation Office Canberra
August 2014 JS 32803 Our commitment to you
We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.
If you follow our information in this publication and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we must still apply the law correctly. If that means you owe us money, we must ask you to pay it but we will not charge you a penalty. Also, if you acted reasonably and in good faith we will not charge you interest.
If you make an honest mistake in trying to follow our information in this publication and you owe us money as a result, we will not charge you a penalty. However, we will ask you to pay the money, and we may also charge you interest. If correcting the mistake means we owe you money, we will pay it to you. We will also pay you any interest you are entitled to.
If you feel that this publication does not fully cover your circumstances, or you are unsure how it applies to you, you can seek further assistance from us. We regularly revise our publications to take account of any changes to the law, so make sure that you have the latest information. If you are unsure, you can check for more recent information on our website at ato.gov.au or contact us. This publication was current at August 2014.
More information
Fuel tax credits
For more information about fuel tax credits, refer to:
■
■ Fuel tax credits calculation worksheet (QC 18871) ■
■ Fuel tax credits – keeping records and calculating eligible
quantities (QC 18683)
■
■ Fuel tax credits – how to complete your business activity
statement (QC 18918)
■
■ Fuel tax credits – making adjustments and correcting
errors (QC 18882)
■
■ Fuel tax credits – domestic electricity generation and
non-profit emergency vehicles or vessels (QC 18867)
■
■ Fuel tax credits and GST instalments (QC 21305).
Gaseous fuels
For information about the taxation of gaseous fuels, refer to Taxation of alternative fuels (QC 24501).
Printed copies
You can also obtain printed copies of some of our publications by:
■
■ visiting ato.gov.au/onlineordering ■
■ phoning the Publications Distribution Service
on 1300 720 092.
Contact us
You can also:
■
■ phone us on 13 28 66 between 8.00am and 6.00pm,
Monday to Friday
■
■ write to us at
Australian Taxation Office PO Box 3001
PENRITH NSW 2740
If you do not speak English well and need help from the ATO, phone the Translating and Interpreting Service on 13 14 50. If you are deaf, or have a hearing or speech impairment, phone the ATO through the National Relay Service (NRS) on the numbers listed below:
■
■ TTY users, phone 13 36 77 and ask for the ATO number
you need
■
■ Speak and Listen (speech-to-speech relay) users, phone
1300 555 727 and ask for the ATO number you need
■
■ internet relay users, connect to the National Relay Service at
