Tips to avoid common errors
It's important to get your claims right.
We've identified some common errors that are made when calculating and claiming fuel tax credits.
Here are some tips to help you avoid them.
Check your fuel is eligible
Check you can claim fuel tax credits for your fuel type and fuel usage. There are some exceptions to what you can claim.
A common mistake is to claim fuel tax credits for fuel you use for private purposes or for travelling on a public road in vehicles with a gross vehicle mass (GVM) of 4.5 tonne or less.
Use the right rate
It's important to make sure you are using the right rate. Check the rates each time you lodge your business activity statement (BAS).
Fuel tax credit rates can change. These can include:
- indexation twice a year in February and August
- changes to the road user charge for fuel used in a heavy vehicle for travelling on public roads.
Check your calculations
A common mistake is calculating fuel tax credits using the cost of the fuel instead of the quantity of fuel multiplied by the relevant rate.
Work out your fuel tax credits using this formula:
Quantity of eligible fuel x Correct fuel tax credit rate = Fuel tax credits
Write this amount (in whole dollars) at label 7D on your BAS. Keep records of your calculations.
Keep records to support your claim
Keep accurate records of your fuel purchases and how the fuel is used in your business.
Check your contracts
The wording of any contracts that involve the supply or provision of fuel may impact who can claim fuel tax credits. Sometimes contractual arrangements have not been reviewed for some time or provisions dealing with the supply or provision of fuel are changed.
Check to make sure that you are the correct person or entity to claim the fuel tax credits on eligible fuel use.
Avoid making errors when calculating and claiming fuel tax credits by following our tips.