This alert is relevant for you if you are involved in the transportation, mining, agriculture or any other relevant business that uses fuel.
Do you use the below fuel in your business for use in:
If yes, you may be able to claim fuel tax credits.
What are fuel tax credits?
As you may be aware, businesses conducting certain activities may claim fuel tax credits (basically a refund of part of the excise duty paid when they purchased the fuel).
Broadly, the amount of fuel tax credit allowed depends on:
Different rate depending on how the fuel is used in your business.
Since the amount of fuel tax credits a business may claim depends on these different factors, there is a risk that businesses may claim fuel tax credits at incorrect rates.
For example, if a business acquired petrol after 2 February 2015, the fuel tax credit rate will differ depending on the type of activity the business is engaged in.
How the petrol is used in the business
Amount of fuel tax credit
|Used in heavy vehicles for travelling on public roads||12.76 cents per litre|
|To power auxiliary equipment (e.g. refrigeration units or concrete mixing barrels) of heavy vehicles travelling on public roads||38.9 cents per litre|
|Other business uses (e.g. used in machinery, plant and equipment)||38.9 cents per litre|
This means that for a heavy haulage vehicle that does 70,000 kilometres a year at 57 litres per 100km, you would be entitled to $5,091 worth of fuel tax credits a year for this vehicle. If you have 10 of these trucks across your fleet, your claim will add up to $50,912.
We can help you with your fuel tax credit claim.
As you can see from the table above, it is very important to correctly classify your business activity so that you can claim the correct amount of fuel tax credit.
Nexia Edwards Marshall has the necessary skill and experience to help you with all your claims for fuel tax credits and to ensure that you claim the maximum amount legally possible.
As such, we can help you to identify whether the fuel you use in your business is eligible for fuel tax credits, determine the amount of fuel tax credits available, and assist you in making a claim for fuel tax credits.
For further information, please contact your Nexia Edwards Marshall Adviser.
 For example liquid fuels (e.g. petrol or diesel), gaseous fuels (e.g. LPG gas) or blended fuels (e.g. mixtures containing biodiesel or ethanol).
 Vehicles with gross vehicle mass (GVM) of more than 4.5 tonnes.
 (70,000km / 100km x 57l) x 12.76 c/l = $5,091
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall. This article originally appeared as an alert on the Nexia Australia website.