Fuel Tax Credit scheme expands

14 April 2008

The Fuel Tax Credit (FTC) regime in Australia will expand from the start of the new financial year.

Fuel tax credits provide businesses with a credit for fuel tax included in the price of fuel they use in many business activities.

BDO Kendalls indirect tax expert David Wilson said many activities which were previously ineligible will now be eligible for a FTC of approximately 19 cents per litre.

“The FTC was previously narrowly available to specified industries such as mining, agriculture, fishing, forestry, electricity generation, marine transport, rail transport, nursing and medical and non-fuel uses of fuel,” Mr Wilson said.

“However the FTC is now expanding to include, for example, quarrying, construction, landscaping, manufacturing, government, local council etc.”

“Anyone using fuel in machinery, plant and equipment for business purposes should be putting in place processes and procedures to ensure the maximum FTC is claimed on a timely basis,” he said.

“It is also an ideal time to consider whether historical claims have been maximised and indeed we are finding that many clients are eligible for FTC claims going back a number of years.”

The Australian Tax Office said to be eligible for the FTC, businesses must be registered for GST and fuel tax credits before making a claim.

Ends.

For further information please contact:
Helen Pham of BDO Kendalls on 07 3237 5713 or
Nadia Farha of Three Plus Consulting on 0408 535 993.

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