• Tips to avoid common errors

    It's important to get your claims right.

    We've identified some common errors made when calculating and claiming fuel tax credits.

    Here are some tips to help you avoid them.

    Check your fuel is eligible

    There are some exceptions to what you can claim. Use our eligibility tool to check you can claim fuel tax credits for your fuel type and fuel usage.

    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.

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    Use the right rate

    Fuel tax credit rates change regularly. It's important you use the right rate so you claim the full amount you're entitled to.

    You can:

    • Use our fuel tax credit calculator to work out your claim. The calculator is updated with all the rate changes.
    • Check the rates on our website before you lodge your business activity statement (BAS).

    If you claim less than $10,000 in fuel tax credits a year, you can use one rate in a BAS period – the rate that applies at the end of the period. See our simplified fuel tax credits for more information.

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    Check the activity

    Rates differ depending on the activity they are used for. A common mistake is to claim fuel tax credits using the ‘other business uses’ rate for heavy vehicles travelling on public roads.

    Use our fuel tax credit calculator to help you use the correct rate for your activity on your claim.

    You can also follow our guidance for apportioning fuel used in heavy vehicles to power auxiliary equipment.

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    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.

    If you claim less than $10,000 a year in fuel tax credits, you can also work out the quantity of fuel based on the cost of the fuel you purchased. See our simplified fuel tax credits for more information.

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    Keep records to support your claim

    Keep accurate records of your fuel purchases and how the fuel is used in your business.

    If you claim less than $10,000 a year in fuel tax credits, you can use a range of documents to support your fuel tax credit claims. See our simplified fuel tax credits for more information.

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    Last modified: 30 Jan 2017QC 44522