Tips on getting fuel tax credits

Written on the 5 December 2013 by Macmillans Waller Fry - Accountants in Maitland

Claiming fuel tax credits can become confusing for some business owners; however, it is important that owners are getting it right.

Fuel tax credits generally provide small business owners with a credit for the fuel tax included in the price of fuel used for business activities in machinery, plant, equipment and heavy vehicles.

 

Business owners must be registered for both GST and fuel tax credits before they are able to make a claim. This claim is made on thebusiness activity statement (BAS). The following tips can help business owners in getting their claim right:

• Businesses need to check the fuel tax credit rate as it is possible that it may have changed recently.
• Businesses should check that they can claim fuel tax credits for their fuel type and usage as there are some exceptions to what can be claimed.
• Businesses often claim fuel tax credits based on the cost of fuel; however, this is incorrect. Fuel tax credits are claimed on quantity.
• Business owners should check the wording of any contracts that involve the supply or provision of fuel as it may impact on who can claim fuel tax credits.
• Don’t forget to keep accurate records of fuel purchases and how the fuel is used in the businesses operations. These records must show the date the fuel was acquired, the type of fuel acquired, the quantity of fuel, how the fuel was apportioned for different activities, and the business activities the fuel was used in.