Fuel text credits are claimed by businesses for a fuel tax which is included in the price of the fuel which is required during any business activity. It can be claimed for all kinds of taxable fuels which are purchased to be used for a business. Fuels which are taxable include:

  • Liquid fuels
  • Fuel blends
  • Gaseous fuels

Which business activities can fuel text credit be claimed for?

The credits help provide business owners credit for fuel tax which is included in the price of the fuel. Any business activity regarding the use of machineries can claim fuel tax. Also businesses which include business plants which make use of heavy equipment that use fuel can claim the fuel credit. All business which are eligible can easily make a claim by displaying a business activity statement.

How much credit can one claim?

The amount of fuel tax credit which can be claimed depends on the kind of fuel being used by the vehicle and the business purpose for which the vehicle is being used. In order to determine the eligibility and making the claim you should take note of the following facts:

  • When was the fuel acquired
  • The type of fuel which you have been using
  • The business activity for which the fuel is being used.

The rate of the fuel tax credit

The credit rate for fuel tax undergoes changes almost every year during February and in august. The rates should be checked every time you are planning to do your business activity statement. The rate can vary more than once during the business activity statement period.

If you claim comes up to less than $10’000 in fuel tax credits per year, there is a different way to calculate the tax.

If you want to make sure that the business you are running is eligible for claiming the fuel tax, you can make use of the fuel tax credit eligibility tool. Also you need to make sure that the claim which you make is accurate, for that you would need to use the fuel tax credit calculator. Small business owners can even download specific apps to calculate their tax credit. Always make sure that you have a fairly good idea regarding the rates before you calculate the BAS.

Also online webinars can provide useful information about any changes in the fuel taxation rates. Also they provide useful tips to avoid coon errors while calculating the claim.

For claims which are less than $10,000 the following simple methods can be used to calculate the fuel tax credit.

  • In case of changes in the credit rates during the BAS period, you can use the rate which is applicable at the end of the BAS period.
  • The total cost of the fuel which is purchased during the BAS period is divided by the average price of the fuel would help you work out the total litres of fuel you can claim for.