Do you want extra cash, for no extra work? Fuel Tax Credit Rebates could be the answer

Are you missing out on some easy cash?

Fuel Tax Credits (FTC) are one of the easiest yet overlooked ways a business can claim a cash rebate, particularly in the property and construction sector.

If your accountant doesn’t tell you you’re eligible to claim FTC, it’s unlikely anyone ever will.

If your business uses fuel to operate machinery, travels off a public road or has a gross vehicle mass (GVM) of 4.5 tonnes or more, chances are, you’re eligible to claim fuel rebates.

This extends to heavy vehicles using fuel to power auxiliary equipment.

For example, if you are a tradie working on a mine site, you can claim the fuel used on a utility vehicle while travelling on-site (i.e. off public roads). Another effective way to increase your fuel rebate claim would be claiming fuel used to power machinery such as generators, bobcats, front loaders or cranes.

Even better, you can go back four years and claim credits on activities you were eligible for during that time.

If you’ve been claiming FTC at the wrong rate, you can also go back and amend previous claims for up to 4 years – this is a welcome cash injection for many property and construction business owners.

Rebates are calculated based on the number of litres used and vary depending on what the fuel is used for.

The range of claimable fuels vary; while diesel and petrol are the most common fuels used by businesses, claims can be made for other liquid and gaseous fuels such as kerosene, heating oil, liquid petroleum gas (LNG), and liquified natural gas (LNG).

THE CLAIMABLE RATES FOR DIESEL OR PETROL ARE AS FOLLOWS: 

*such as fuel used by a heavy vehicle to power a connected refrigeration unit using fuel from a heavy vehicle.

The claimable rates for fuel used for machinery and light vehicles are reviewed and adjusted bi-annually, usually February and August, in line with the Consumer Price Index (CPI). 

The claimable rate for fuel used in heavy vehicles travelling on public roads is reviewed annually and adjusted in July, in line with the Road User Charge (RUC).

The simplicity of the fuel claim can vary depending on how the fuel is used by a business.

In many circumstances, claiming FTCs is a relatively simple exercise and something all business owners should explore, especially if you are travelling onsite or using fuel for machinery.

LEARN MORE

To learn more about how we could help you claim fuel tax rebates in the property and construction industry, contact your local RSM office.