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Remember that a fuel tax credit increase has just gone through

Fuel tax credit rates are indexed twice a year, in February and August, in line with the consumer price index (CPI). Also these rates change regularly, so it’s important to check when you are preparing for us to complete an activity statement for you. 

See this ATO webpage for the rates that apply from 4 February to 30 June 2019. (Past rates are also displayed there, just scroll down.) 

If you claim less than $10,000 in fuel tax credits each year, you can use any of the following simplified methods that best suits your needs.  

Use the rate that applies at the end of the BAS period. When there is a change of rate during the business activity statement (BAS) period, you can calculate the fuel tax credit claim by using the rate that applies at the end of the period. 

There is no need to split fuel purchases during the period and use two different rates. Simply total the litres for the period and use the rate that is current on the last day of the BAS period to work out the claim. 

To do this in the fuel tax credit calculator (see below), enter your total fuel purchases in the final rate period. 

Work out the litres. To work out the quantity of fuel bought in a tax period, simply use the total cost of fuel you purchased in the BAS period, divided by the average price per litre for the BAS period. 

Calculate the litres as follows: Litres = Total cost of fuel purchased ÷ Average price of fuel. 

There is also a fuel tax credit calculator to help get the claim right. The calculator is also available on the “ATO app” for your smart device (download it from here). 

Harper Group Pty Ltd Chartered Accountants Frankston Ph 9770 1547  

Disclaimer: All information provided in this article is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information. 

Michael Sinclair