Fuel Tax Credits

Most businesses that use fuel in their business operations are entitled to recover some, or all, of the amount of tax paid on that fuel as Fuel Tax Credits.  The main exceptions are in relation to fuel used in aircraft and fuel used in light vehicles (less than 4.5t Gross Vehicle Mass) for travel on a public road (cars, utes, vans, motorcycles etc).

In recent years, legislative changes and landmark court decisions have combined to substantially increase FTC entitlements for most claimants.  However, as a result of the numerous changes, many of these claimants are unaware of the extent of their entitlements.  In these cases, retrospective refunds may be available for fuel that has already been purchased over the last four years.  The amount of fuel tax credits available depends on the type of fuel used and the activity in which it was used. The difficulty often lies in calculating “fair and reasonable” methodologies to apportion fuel between activities.

If your business uses fuel in any of the following activities, there is a strong chance that you will be entitled to retrospective refunds:

  • in specialised heavy vehicles, including cement mixers, garbage trucks, refrigerated trucks, fuel tankers, commercial buses, tip trucks, crane trucks and any other vehicles which use fuel to operate auxiliary equipment;
  • in heavy vehicles which use fuel for travelling and/or idling off public roads (eg. on mine sites, farms, quarries and private property); and
  • in light vehicle fleets which travel extensively on mining, oil or gas sites, agricultural properties or other private property in remote locations.

We specialise in obtaining refunds on behalf of our clients and offer a free initial review service to help our clients identify if refund opportunities exist.  In addition to our focus on obtaining refunds for our clients, we also provide the following FTC-related services:

  • implementation of systems for maximising ongoing FTC claims;
  • FTC audit assistance and ATO negotiations;
  • FTC technical advice and contract structuring;
  • FTC private ruling submissions and objections; and
  • litigation of FTC disputes.

The current fuel tax rates are available here.

For all fuel tax related questions, please contact Peter Perich 3157 1630 or pperich@taxandlegal.com.au .   

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