Do you claim fuel tax credits? If yes, you should then avoid these common fuel tax credit mistakes when you claim fuel tax credits and don’t forget to keep accurate records of your fuel purchases, detailing how your business uses the fuel. Get your claims right and use these some tips to help you avoid some common mistakes made when calculating and claiming fuel tax credits.
Remember that there are several exceptions to these deductions.
You may use the tax office eligibility tool to find out if you can claim your fuel tax credits, depending on your fuel usage and fuel type. You should check the activity the fuel is used for. One common error is claiming fuel tax credits for private purposes or for travelling on a public road in vehicles with a GVM (gross vehicle mass) or 4.5 tonnes or less.
Note also that fuel tax credit rates regularly change.
You should use the right rate to be able to claim the full amount you’re entitled to. You may also use one rate in a business activity statement (BAS) period if you claim $10,000 or less in fuel tax credits per year. If you claim $10,000 or less, you may also work out the quantity of fuel based on the cost of the fuel purchased.
Rates are different, depending on how the fuel was used.
Another common error is claiming fuel tax credits using the “other business uses” rate for heavy vehicles travelling on public roads. You may also be guilty of the error of calculating fuel tax credits using the fuel cost rather than the quantity of fuel multiplied by the relevant rate.
You should calculate your fuel tax credits by multiplying the quantity of eligible fuel by the correct fuel tax credit rate. It is important to keep records to support your claim.
For more information about taxes in Australia, contact a Specialist to discuss your particular circumstances.
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Chan & Naylor Group has national offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and Bankstown, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.