On March 29 this year, the Federal Government temporarily halved the fuel excise to ease motorists’ pain at the pump.
Australia’s fuel excise is a tax applied to all petrol and diesel fuel sold at service stations throughout the country and is a flat tax which was 44.2 cents per litre of fuel and is now 22.1 cents until September 28.
The price of fuel in Australia is affected by a few things, including the international price of oil. Due to the political tensions in Europe and OPEC resisting calls to increase supply, the oil price has risen to record highs, consequently causing the cost of fuel to skyrocket over the past six months.
This fifty per cent reduction applies to petrol, diesel and all other fuel and petroleum-based products, except for aviation fuels.
So, what does this mean for you and your Business Activity Statement?
There are fuel tax credits available to businesses. These provide businesses with a credit for the fuel tax included in the price of fuel used in machinery, plant and equipment, heavy vehicles, and light vehicles travelling off public roads or on private roads. The amount depends on when you acquire the fuel, what fuel you use, and the activity you use it in.
In line with the temporary halving of fuel excise rates from March 30, fuel tax credits have also been reduced. Fuel purchased from this date for use on public roads will have no credits attached, and all other fuel credits will be halved to 22 cents per litre.
We highly recommend you frequently check the rate each time you complete your Business Activity Statement, as they change regularly.
Please get in touch with the team at YIELD Business Advisory to learn more about how and what you can claim fuel credit tax this year and how we can assist you and your business.
Looking for further information on vehicle-related claims? Please head to our blog: Claiming Motor Vehicle Expenses.
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