News

Changes in Fuel Tax Credit Rates

If you or your business is registered for fuel tax credit (FTC) rebates don't look away!

To see if your travel is eligible for FTC rebates please refer to - /news/november-2013-fuel-tax-rebates/

The tax commissioner has recognised auxiliaries that can be attached or used via the same fuel system as a motor vehicle have different fuel consumption to power ratios therefore the general percentages of fuel needed to power auxiliaries has been established, as show in the table below:

Item

Vehicle

%

Comment

1

Concrete transit vehicle

30

Includes the mixing barrel and all mechanism used in loading, unloading and transporting the concrete.

2

Commercial bus or coaches

5

Air conditioning for passenger comfort. All taxable fuel types.

3

Refrigerated vehicle

10

Refers to refrigeration unit of a vehicle transporting temperature sensitive goods.
Includes fuel sourced from a separate or the same fuel tank as that which fuels the main engine.

4

Waste management collection

15

Equipment of a vehicle used to lift the bin to deposit contents into the vehicle's hopper and to compact the contents of the tray. Includes all configurations of bin lifting equipment.
Does not include pumping in relation to waste management, this equipment relates to item 5.

5

All other vehicles with auxiliary equipment

5

For example, elevated work platforms, truck mounted loader cranes and pumping equipment for loading and unloading.

Note that this auxiliary equipment use as a defined percentage of consumption as above has been regarded by the ATO as to only relate to road going vehicles.  If your auxiliary equipment is used in the vehicle's offroad capacity, then a more thorough examination of fuel consumption must be made to determine correct ratios of consumption to be able to access higher rate claims.

From the 2nd February 2015 the FTC rates have changed.

The new FTC rates are as follows:

Business Use

Eligible Fuel

Rate from 10 November 2014

Rate from 2 February 2015

In a heavy vehicle* (including emergency vehicles)
for travelling on public roads

Liquid fuels - for example, diesel or petrol

12.46 cents p/litre

12.76 cents p/litre

All other business uses - on private roads, off
public roads and non-fuel uses

Liquid fuels - for example, diesel or petrol

38.6 cents p/litre

38.9 cents p/litre

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

Liquid fuels - for example, diesel or petrol

38.6 cents p/litre

38.9 cents p/litre

Packaging fuels in containers of 20 litres or less
for uses other than in an internal combustion engine

Mineral turpentine, white spirit, kerosene and certain other fuels

38.6 cents p/litre

38.9 cents p/litre

Supply of fuel for domestic heating

Heating oil and kerosene

38.6 cents p/litre

38.9 cents p/litre

But how does all this affect my claim? Here's an example:

Timmy Baldwin has a 2010 model prime mover with a refrigerated trailer which he uses to transport frozen goods across Victoria. Timmy's truck requires diesel to run. Timmy's fuel consumption for the month is 2,000 litres. Timmy is able to rely on the Commissioner determined percentages of auxiliary use for a higher rate claim on part of his fuel.

Prior to the new changes Timmy would have claimed (Calc - 1) $301.00. With the new rate Timmy's claim has increased to $309.00 (Calc - 2). Overall Timmy is receiving an extra $8.00 in fuel tax rebates. This may seem relatively minor nonetheless if multiple vehicles are owned and Business Activity Statements (BAS) are lodged quarterly then the difference may be significant.

Calc 1 -

2,000.00 litres * 90%

=

1800 litres

 

2,000.00 litres * 10%

=

200 litres

1,800.00 litres * 12.46 cents per litre

=

$224.00

200.00    litres * 38.60 cents per litre

=

$77.00

Combine FTC $224.00 + $77.00

=

$301.00

 

Calc 2 -

2,000.00 litres * 90%

=

1800 litres

 

2,000.00 litres * 10%

=

200 litres

1,800.00 litres * 12.76 cents per litre

=

$230.00

200.00    litres * 38.90 cents per litre

=

$79.00

Combine FTC $230.00 + $79.00

=

$309.00

Please note this information is general in nature.  For specific advice to your circumstances, contact your BBA Advisor today.