Fuel Tax Credits

Fuel is a significant expense for Australian businesses. Fortunately, the Australian Tax Office (ATO) offers a Fuel Tax Credit (FTC) incentive to help offset these costs. The FTC allows businesses to claim back a portion of the fuel excise duty paid on eligible fuel used for business purposes. However, many GST-registered businesses in Australia are unaware that they can recoup part of their fuel tax payments for vehicles and auxiliary equipment.

Understanding the FTC and its eligibility criteria, claims, and benefits is crucial not just for maximising your business’s savings but also to keep the cost of fuel in Australia at sustainable prices, particularly for enterprises heavily dependent on it.

Your Path to Fuel Tax Savings Starts Here

FTC - Business

What are Fuel Tax Credits?
A Fuel Tax Credit (FTC) is a tax offset that can be claimed by GST-registered businesses for the fuel tax component of fuel used for business purposes. It’s designed to compensate businesses for the fuel tax they pay. Fuel tax credits allow businesses to deduct this tax from their fuel costs. This initiative exists to support economic activities by reducing operating costs for eligible businesses, including those in transport, construction, and agriculture.

What is the fuel tax credit rate?
The fuel tax credit rates change regularly and are contingent upon the activity for which the fuel is used and the date of procurement. Take note that the ATO also recalculates the rates every six months. Consequently, the fuel tax credit rates specified for each financial year should be used to determine the fuel tax credit rates for businesses. While the fuel tax credit calculator will help you get your claim right, you may be able to use simplified methods to keep records and calculate your fuel tax credit claim for all claims and claims less than $10,000 each year.

At the time of writing, the current fuel tax rates from 1 July 2024 to 4 August 2024 are:

https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/fuel-schemes/fuel-tax-credits-business/rates-business/from-1-july-2024-to-4-august-2024

Eligibility

Eligibility for Fuel Tax Credits

To be eligible for a Fuel Tax Credit, your business must:

Be registered for GST
Use fuel for business purposes (not private use)
Use the fuel in eligible vehicles or machinery

Note: The ATO provides a Fuel Tax Credit Eligibility Tool to help determine eligibility.

How to Claim

How to Claim Fuel Tax Credits
Claiming the FTC involves the following steps:

Keep detailed records: Maintain accurate records of fuel purchases, including dates, amounts, and odometer readings.

Calculate the credit: Determine the eligible fuel consumption based on your eligible business activities.

Include in your BAS: Claim the FTC on your Business Activity Statement (BAS).

Note: The specific process for claiming an FTC may vary depending on your business structure and accounting methods. It’s essential to follow the ATO guidelines for claiming the FTC to avoid potential issues.

Benefits

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Don't Miss Out on Your Fuel Tax Rebates – Claim Your Fuel Tax Credit Today

Want to learn more about claiming Fuel Tax Credits for your business? Start by assessing your business’s eligibility and gathering the necessary documentation. For more detailed information and assistance with Fuel Tax Credits, visit the Australian Taxation Office website or consult a tax professional.

More Resources:

1. Fuel tax credit calculator

2. Fuel tax credit eligibility tool

3. Fuel tax credit rates for business

4. How to register / cancel your registration for fuel tax credits

5. How to claim fuel tax credits

Do you need further assistance on how you can save more for your fleet business?
Contact Ubivio today for a free consultation on all our fleet management solutions for your business fleet vehicles.