With Fuel prices increasing as a result of inflation, many Australians are facing a difficult period ahead. Therefore the Government is providing businesses who have purchased fuel for their business with fuel tax credits. 

This has been designed to provide Australian businesses with a credit for the tax that is included in the price of fuel.

Fuel Tax Credits include fuel used in business activities such as:

• Machinery
• Plant
• Equipment
• Heavy vehicles
• Light vehicles traveling off public roads or on private roads.

Depending on when you acquire the fuel, what fuel you use, and the activity you use it in will depend on the amount you receive. 

When completing the business activity statement make sure your client checks the rates, as the fuel tax credits rates change on a regular basis.

Fuel Tax Credits rates are recorded twice a year in February and August. This is based on the upward movement consumer price guide.

The Fuel Tax Credits rates for fuel used in heavy vehicle traveling on public roads is reviewed annually and will change in July. An increase in excise duty rates means that in July rates will also change for biodiesel.

Tax credits are available based on:

• The fuel tax credit rate when you bought the fuel
• The business activities you are using the fuel for.

Eligibility Criteria

In order for your client to make a claim for fuel tax credits they must be registered for:

• GST when you acquired the fuel
• Fuel tax credits when you lodge the claim.

If eligible your client can claim fuel tax credits for eligible fuel they have acquired, manufactured or imported and used in their business.

How to claim

When claiming fuel tax credits, your client needs to make sure they are claiming it on their business activity statement. Your client is able to claim fuel tax credits at the time they acquire the fuel. However, your client must make sure they are claiming it within four years. The four years begin the day after they were required to lodge the BAS for the tax period in which the fuel was acquired.

To find out more about how you can register click here

Contact our team today on 1300 4 MORRIS to see how we can assist your client’s business.