• Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Supplying or distributing fuel for domestic home heating

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If you distribute heating oil or kerosene for residential heating, you can claim fuel tax credits so that individual users do not have to claim them. You must have a reasonable belief that the fuel will only be used for domestic home heating. Fuel tax credit rates for fuel acquired from 1 July 2012 to 30 June 2014 and used in this activity were reduced by a carbon charge because the fuel was combusted.

    Example: Supply of fuel for domestic home heating

    Mark purchases bulk heating oil at a cost that includes excise duty. He sells and distributes the heating oil to various locations in Tasmania. He delivers to households for use in heating, and also to a number of businesses, including a bakery which uses the heating oil to fire its ovens.

    Mark is entitled to claim fuel tax credits on the heating oil he sells to the households. He can take the fuel tax credit entitlement into account when setting the price of the heating oil.

    Mark is not entitled to claim fuel tax credits for the heating oil he sells to businesses such as the bakery because each business is entitled to claim fuel tax credits in their own right.

    The fuel tax credit rate Mark can claim for the heating oil he acquires from 1 July 2013 for delivery to households is 31.622 cents per litre.

    End of example
      Last modified: 19 Sep 2014QC 41272