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  • Fuel tax credits for passenger air conditioning

    From 1 November 2019, your clients must claim fuel tax credits for fuel used to power passenger air conditioning units (for example in commercial buses and coaches) at the rate for ‘heavy vehicles for travelling on public roads’. This rate is reduced by the road user charge (RUC).

    When your clients claim fuel tax credits for fuel used in passenger air conditioning of a bus or coach, for fuel acquired:

    • before 1 November 2019, they can use the ‘all other business uses’ rate
    • from 1 November 2019, they must use the fuel tax credit rate ‘for heavy vehicles for travelling on public roads’.

    Your clients may need to use different rates in their December quarter activity statement for fuel acquired before and after 1 November 2019.

    This change is a result of the decision in Linfox Australia Pty Ltd v Commissioner of Taxation.

    See also:

    Last modified: 04 Nov 2019QC 60526