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February marks fuel tax credit rates increase

February marks fuel tax credit rates increase

As of 1st February 2016, fuel tax credit rates have increased by 0.3 cents per litre, for all fuel purchased for eligible heavy haulage vehicles for use on Australian public roads and highways.

This means the rate now stands at 13.36 cents per litre, and applies to vehicles heavier than 4.5 tonnes (in terms of GMV, or gross vehicle mass), or pre-July diesel vehicles weighing exactly 4.5 tonnes.

The rate for fuelling auxiliary equipment has also risen, up to 39.5 cents per litre from the former rate of 39.2 cents per litre.

Why have the rates changed?

Fuel tax credits rates actually change fairly often – the latest alteration in rates is due to indexation, which occurs twice a year, in February and August.

What does this mean for operators?

As you’ll know, fuel tax credits help transport companies by providing credits for the tax included in the cost of fuel used in heavy vehicles and equipment, machinery and plant.

The system protects the industries that rely on the above in order to do business by safeguarding them from increases in fuel excise.

Businesses registered for both GST and fuel tax credits can claim back the amount at a later date, so the increase is actually good news for the manufacturing and mining industries.

How much can I claim?

The amount that your company can recoup depends on the fuel you use, how you use it and when you acquired it. Rates could rise again in August, so it’s vital you keep tabs and always check your business activity statement to ensure you’re not missing out. Ensure you keep clear records, too – your business should have a system in place for this, through the fuel cards used by your operators.

If you’re in any doubt as to which of your vehicles or which areas of operation qualify, ATO has a number of tools and apps to help, including an online fuel tax credit calculator, which can also calculate amounts based on previous rates.

National Heavy Haulage

At National Heavy Haulage, we support Australian heavy haulage companies with solutions designed for the mining and civil construction sectors. We provide a range of heavy haulage equipment solutions to the mining and civil construction businesses across Queensland and further afield. If you’d like to find out what we can do for you, talk to one of our friendly and experienced team today.

As always, this article is just a guide, always trust your legal or finance professional for advice.

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