Fuel Tax Credit Solution: How to Claim Reduced Rates and Stay ATO-Compliant

Fuel tax credits are a valuable way for businesses to reduce their fuel costs, but staying compliant requires understanding how the Fuel Tax Credit Solution applies to your claims. Because fuel tax credit rates and rules can change frequently, it’s important to stay up to date to avoid errors or overclaiming. To ensure your fuel tax credit claim is accurate and meets ATO requirements, here’s what you need to know for this quarter.

1. Check if you used the reduced rates that applied for fuel acquired between 30 March and 28 September 2022.

During this period, there was a temporary reduction in fuel excise duty, which meant that reduced fuel tax credit rates applied. Therefore, it’s important to check if you used the reduced rates during this period to avoid overclaiming. If you didn’t use the reduced rates, you may need to make adjustments to your claim to avoid penalties or interest charges.

2. Use the fuel tax calculator every time you make a claim.

To ensure that you’re claiming the correct amount of fuel tax credits, it’s essential to use the fuel tax calculator provided by the ATO. The fuel tax calculator takes into account various factors such as fuel type, fuel usage, and eligible vehicles to calculate the correct amount of fuel tax credits. By using the calculator every time you make a claim, you can avoid overclaiming or underclaiming fuel tax credits.

3. Know the eligibility criteria for fuel tax credits.

It’s important to be aware of the eligibility criteria for fuel tax credits to ensure that you’re claiming the correct amount. For example, if you only used fuel in your heavy vehicle for travelling on public roads during the period of reduced fuel tax credit rates, you weren’t eligible to claim fuel tax credits. Therefore, it’s essential to understand the eligibility criteria before making a claim to avoid any compliance issues.

4. Apply the new fuel tax credit rates.

Fuel tax credit rates increased on 1 February in line with fuel excise duty indexation. Therefore, it’s important to apply the new rate to get more from your fuel tax credits. By doing so, you’ll be able to claim a higher amount of fuel tax credits and reduce your fuel costs even further.

5. Keep accurate records to support your claims.

It’s crucial to keep accurate records to support your claims for fuel tax credits. This includes keeping receipts for fuel purchases, as well as maintaining a logbook to track fuel usage. By keeping accurate records, you can demonstrate to the ATO that you’re eligible for the fuel tax credits you’re claiming. In case of an audit, you’ll have the necessary documentation to support your claim.

6. Easily fix errors and make adjustments on your current BAS.

If you make an error on your fuel tax credit claim, you can easily fix it and make adjustments on your current BAS. It’s essential to rectify any errors as soon as possible to avoid penalties or interest charges. By making the necessary adjustments, you can ensure that your claim is accurate and compliant with ATO requirements.

7. Seek assistance from registered tax and BAS agents.

If you need help with your BAS or fuel tax credit claim, registered tax and BAS agents can provide assistance. They have the expertise and knowledge to ensure that your claims are accurate and compliant with ATO requirements. By seeking assistance from registered tax and BAS agents, you can avoid compliance issues and ensure that your claims are correct.

In conclusion, staying up-to-date with changes in fuel tax credits is essential for businesses that want to reduce their fuel costs. By using the fuel tax calculator, understanding the eligibility criteria, keeping accurate records, and applying the new fuel tax credit rates, you can ensure that your fuel tax credit claim is accurate and compliant with ATO requirements. If you need help, registered tax and BAS agents are available to provide assistance.