According to an announcement by the Australian Tax Office, smaller operators can now save time and money and calculate fuel tax credits the easy way. The ATO has released a simpler way to calculate fuel tax credits for diesel used in heavy vehicles.
You can use this new basic method for heavy vehicles to calculate fuel tax credits for diesel used in heavy vehicles if you claim less than $10,000 each year.
The method makes it easier to work out on and off public road use. The rate for travel off public roads is higher than on public roads. This means you will get more fuel tax credits if you calculate off public road use correctly.
Examples of travel off public roads includes heavy vehicle use in warehouses, depots or car parks, where you may be idling, loading or unloading your vehicle.
You can use this method for diesel acquired on or after 1 October 2020. You cannot use another method for calculating fuel used for travel on and off public roads if you use this method.
Use the basic method for heavy vehicles when you lodge your next BAS. Follow the steps on the ATO website at ato.gov.au/basicmethod.
Fuel tax credits provide businesses with a credit for the fuel tax that’s included in the price of fuel used in a business.
If you’ve just started using fuel in your business, check if you are eligible for fuel tax credits on the ATO website at ato.gov.au/ftceligibility.
Basdically, to make a claim for fuel tax credits you must be registered for:
GST when you acquired the fuel
- fuel tax credits when you lodge the claim.
- You can claim fuel tax credits for eligible fuel you acquired, manufactured or imported and use in your business.
The Fuel tax credit eligibility tool can help you work out which of your business activities are eligible.