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Adjustment on Fuel Tax Credit Rates

The Australian Taxation Office (ATO) has advised tax payers there has been an adjustment to the fuel tax credit rates for heavy vehicles starting 1 July 2016.

From the beginning of the new financial year, heavy vehicles that use petrol or diesel and travel on public roads will have an increased fuel tax credit rate of 13.6 cents per litre. This change is due to a decrease in the road user charge.

Click here for the new rates from 1 July 2016

Businesses who are eligible for fuel tax credits will need to apply the revised rate when they calculate their fuel tax credit claims on their business activity statements.

Note that fuel tax rate credit are indexed twice a year (February and August) in line with the consumer price index.

The ATO also reminds that if claiming up to $10,000 in fuel tax credits each year, eligible businesses have simpler ways to keep their records and correctly calculate claims such as:

  • using one rate in a BAS – simply get the total litres used during the period and use the rate that applies at the end (last day) of the BAS period.
  • working out the litres used – to get the litres used during the BAS period, simply divide the total cost of the fuel purchased by the average price of fuel and then use this calculator to compute your fuel tax credit.

Finally, you are required to keep documents that can support fuel tax credit claims for five years.

Acceptable documents include:

  • contractor statements;
  • financial institution business credit/debit account statement;
  • financial institution personal credit/debit account statement point-of-sale docket and
  • fuel supplier invoice.

If you have any questions about deductions you can claim or need help in lodging your taxes, you can contact us or call and speak to one of our accountants at (08) 9301 2200

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