• 3. Fuel Tax Credit market research update

    Claudia provided an update on the recent market research undertaken by Colmar Brunton.

    Research objectives were to:

    • determine fuel tax credit clients and tax practitioners’ (tax agents and BAS agents) level of awareness and understanding of each of the recent changes to the fuel tax credit rates, with a particular focus on the impacts of the introduction of the carbon charge
    • identify any gaps in information and/or level of understanding around the suite of changes, and
    • provide recommendations for strategies on how the ATO could address any key information gaps and increase the level of understanding to ensure eligible entities are accurately calculating fuel tax credit amounts they are entitled to.

    Overall, the results have been positive around awareness and understanding of the new arrangements, particularly with self-preparers who were significantly more likely to be aware of fuel tax credit changes than those who have claims managed by tax professionals (78% vs. 38%).

    The micro mining, micro construction, small and medium enterprises and Government/Not-For-Profit (NFP) sectors were all significantly more aware of the changes, than all the other micro industry segments.

    The research revealed that the most preferred channel for information from the ATO is hardcopy mail, followed by email as the next most preferred channel.

    The research results revealed that the general awareness of the changes to fuel tax credit rates that came into effect from 1 July 2012 were rated moderate to high among fuel tax credit claimants overall (67%), and very high for tax practitioners (98%). The research also revealed that a detailed understanding of the changes to fuel tax credits was not necessarily a prerequisite to compliant behaviour. Most claimants reported high levels of confidence in their claiming process and their use of the correct rates in their calculations and were either using a tax professional to assist with the preparation of fuel tax credit claims, were using ATO resources (most commonly every reporting period) to calculate claims themselves, or a combination of both. Claimants described the overall process of managing their (or their clients’) fuel tax claims, as easy.

    Claudia advised that the research will be published on ato.gov.au and once the results are published, the link will be provided to members.

    Action Item: 12062013-3-3 Responsibility

    Due Date: As soon as possible

    ATO (Secretariat)

    Secretariat to send research report link to members

      Last modified: 19 Feb 2014QC 38789