Getting Fuel Tax Credits Right this Quarter

Hello Chasers,

Taxpayers should remember to use the ATO’s ‘fuel tax credit calculator’ on its website to help them apply the correct fuel tax credit rates when preparing their quarterly business activity statement (‘BAS’), due on 28 October 2023.

Fuel tax credit rates change regularly, so taxpayers should make sure they are using the correct rates.

The ATO recommends that taxpayers follow the tips below to avoid common errors when applying for fuel tax credits:

  • check that they are using the simplified methods accurately, and that they are eligible to use these methods. Generally, simplified methods are only available if their fuel tax credit claims are less than $10,000 per year;
  • check their claims and calculations to make sure they do not include diesel exhaust fluids such as Adblue or other additives. These are not taxable fuels and have no excise or customs duty paid on them, and so fuel tax credits cannot be claimed for them; and
  • check their contract arrangements and eligibility before they claim. Taxpayers can claim fuel tax credits for eligible fuel they have acquired, manufactured or imported which they use in their business.

For more information, taxpayers can refer to ‘Tips on how to get your fuel tax credits right’ on the ATO’s website.

If you need some help please contact Shannae Hewett on 0355612643.

Have a great day!

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