As of 2nd February 2015 the rates used to calculate your Fuel Tax Credits have changed. These rates are indexed twice annually, usually in August in February, to reflect the CPI movement. If your business is registered for Fuel Tax Credits, this means that your March 2015 BAS will need to take into account the changes in rates.
Not sure if these changes will affect you? The Australian Tax Office advises that the following business use categories have been revised:
- In a heavy vehicle (including emergency vehicles) for travelling on public roads
- All other business uses– on private roads, off public roads and non-fuel uses (eg. Agriculture, landscaping, construction, mining etc)
- 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
- Packaging fuels in containers of 20 litres or less for uses other than in an internal combustion engine
- Supply of fuel for domestic heating
Fuel Tax Credits are claimed as part of your Business Activity Statement at the time that the fuel is acquired, manufactured or imported. In order to calculate the credit to be claimed, you are required to keep a record of the types of fuel purchased as well as the total litres purchased for each period. It is important to note that you are required to be registered for both GST and Fuel Tax Credits in order to make a claim.
If you have any questions with respect to Fuel Tax Credits and your business please contact your Accountant and we will be happy to discuss your particular circumstances in more detail.