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Fuel Tax Credit Rates from July 2013

Fuel Tax Credits for fuel usage attributable to Airconditioning usage

Fuel Tax Credit Rate Decrease from July 2013

Based on determinations from the National Transport Commission and the Australian Taxation Office, From 1 July 2013, fuel tax credit rates and registration charges have changed.

From 1 July 2013, after subtracting the road user charge of 26.14 cents per litre, the fuel tax credit rate for liquid fuels (for example, diesel or petrol) used in heavy vehicles is decreased from 12.643 to 12.003 cents per litre. Gas fuels used in buses such as LNG and CNG are not entitled to fuel tax credits.

More detailed information on changes to the Road User Charge and Fuel Tax Credits is available at the ATO website www.ato.gov.au

In addition to changes to the road user charge and fuel tax credits the National Transport Commission has issued its determination on heavy vehicle registration charges which took effect from 1 July, 2013.

Under the determination registration for 2 axle buses over and under 12 tonnes has increased by $12 and registration for 3 axle buses has increased by $61.

The table below outlines registration charge increases by vehicle type.


Fuel Tax Credit for fuel used attributable to Airconditioning usage

Update February 2013

The Australian Taxation Office (ATO) recently published  the Practice Statement Law Administration (General Administration) 2013/4. This is the percentage of taxable fuel (Safe Harbour) that the ATO accepts as a fair and reasonable apportionment of the fuel used in a bus for powering the air conditioning.

The Safe Harbour identified by the ATO for fuel used by air-conditioning in buses is 5%.

 The Practice statement is available at the following link http://law.ato.gov.au/atolaw/view.htm?DocID=PSR/GA20134/NAT/ATO/00001&PiT=99991231235958.

 Operators wishing to make a claim have two options

 1)      If you wish to claim at the Safe Harbour rate you can  include the 5% fuel use attributable to air-conditioning in your next  fuel tax credit entitlement claim. 

2)      Testing on bus fleets has demonstrated higher rates of fuel use attributable to air conditioning. If you wish to conduct your own testing  the following Practice Statement outlines acceptable apportionment methodologies:

http://law.ato.gov.au/atolaw/view.htm?dbwidetocone=04%3APSR%3ABy%20Topic%3AFuel%20Tax%3A%2300003%23PS%20LA%202010%2F3%20-%20Apportionment%20for%20the%20purposes%20of%20the%20Fuel%20Tax%20Act%202006%3B

 

How to Claim

In May 2013 the Australian Taxation Office issued a ruling which now means the fuel used in air conditioning in buses is no longer subject to the road user charge.

This ruling entitles bus operators to make claims for up to 4 years passed with relation to the fuel use attributable to air conditioning on their buses.

Read the previous summary of the process to claim fuel tax refunds from the Australian Taxation Office:

Fuel Tax Refund Update Fuel Tax Refund Update (533 KB)

 

Safe Harbour Figure 

The Australian Taxation Office (ATO) released a Draft Practice Statement, which outlines a proposed Safe Harbour figure for fuel use attributable to the operation of air conditioning in buses. The Safe Harbour figure will allow bus operators who do not wish to conduct their own testing to claim a refund on the Road User Charge for 5 per cent of their fuel use for a period backdated four years from the lodgment of a refund notification letter with the ATO.

Go to the ATO's Practice Statement on how bus operators can calculate apportionment: PS LA 2010/3 - Apportionment for the purposes of the Fuel Tax Act 2006 (As at 5 July 2013)

Read a summary of the Safe Harbour here.

Fuel Tax Refund Update Safe Harbour Fuel Tax Refund Update Safe Harbour (283 KB)

 

If you have inquiries regarding the changes to fuel tax credits please call the BIC on (02) 6247 5990 or email enquiries@bic.asn.au.

 


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