Rates increase for fuel tax credits

 fuel tax credits

Rates increase for fuel tax credits

Fuel tax credit rates increased on 1 February 2017.  These rates are indexed twice a year, in February and August, in line with the consumer price index (CPI).

The rates vary depending on when you acquire the fuel, the type and quantity of fuel you use, and the activity you use it for.  Rates may also change for fuel used in heavy vehicles traveling on public roads.  This is due to changes to the road user charge, which is reviewed annually.

If you claim less than $10,000 in fuel tax credits each year, there are now simpler ways to record and calculate your claim.

For the BAS period ending 31 March 2016 and onwards, you can:

  • use one rate in a BAS period – the rate that applies at the end of each BAS period
  • work out your litres based on the cost of the fuel you purchased.

To check which rate applies to your business, visit the Australian Taxation Office (ATO) website or contact our office.  Remember, there are time limits for claiming fuel tax credits, making adjustments and correcting errors.  Generally, you must claim or amend your claim within four years.