If you pay GST instalments and are eligible for fuel tax credits, you must claim them on a business activity statement (BAS). This is regardless of whether you pay two or four GST instalments for the financial year.
Before you were registered for fuel tax credits, you may have received instalment notices. After you register, you will no longer receive these notices. Instead, you will receive a quarterly BAS.
Your fuel tax credits are not included in the calculation of your GST instalment amount printed on your BAS. You need to show your fuel tax credits at label 7D and any fuel tax credits you have over claimed at 7C.
Fuel tax credits can only be claimed on your BAS. They cannot be claimed on your annual GST return.
Lodging a BAS to claim your fuel tax credits
If your only obligation is your GST instalment amount, you must lodge your BAS to claim your fuel tax credits. If you do not have fuel tax credits to claim for the tax period, you may still need to lodge a BAS. For example, you must lodge a BAS if you need to vary your GST instalment amount or report a fuel tax credit adjustment.
If you pay GST instalments and already lodge a BAS for other reporting requirements such as pay as you go (PAYG) withholding, continue doing this, even if you do not have fuel tax credits to claim.
Special rule for the June quarter (quarter 4)
A special rule applies to the June quarter (1 April to 30 June). You must lodge a BAS in this quarter if:
- you over claimed fuel tax credits and need to make an adjustment at label 7C to decrease your fuel tax credit entitlement
- you haven’t made an adjustment on a previous BAS in that financial year to reflect the decrease to your fuel tax credit entitlement.
See also:
Example: GST instalment payer previously receiving an instalment notice
Raj runs a lawn maintenance business and pays GST by instalments. Before he registered for fuel tax credits, Raj received instalment notices and paid the amount shown on that notice.
After he registered for fuel tax credits on 15 August, Raj received a quarterly BAS at the end of the first quarter instead of an instalment notice.
Raj’s BAS will show the GST instalment amount and have two additional labels for his fuel tax credits - label 7D Fuel tax credits and label 7C Fuel tax credit over claim.
Raj’s GST instalment amount is $1,725.
September quarter
During winter, Raj closes down his business as there is no call on his services. When Raj receives his September quarter BAS it will show as follows:
Label 1A - GST instalment |
$1,725 |
|
Label 7D - Fuel tax credit |
$ |
Label 8A |
$1,725 |
|
Label 8B |
$ |
|
|
|
Label 9 – Payment |
$ |
As Raj has no fuel tax credit claim, he does not have to lodge his BAS. He simply pays his instalment amount of $1,725 by the due date.
December quarter
In the December quarter, Raj re-opens the business. Raj calculates his fuel tax credits as $320.40
Raj completes his BAS as follows:
Label 1A - GST instalment |
$1,725 |
|
Label 7D - Fuel tax credit |
$320 |
Label 8A |
$1,725 |
|
Label 8B |
$320 |
|
|
|
Label 9 – Payment |
$1,405 |
As Raj wants to claim his fuel tax credits, he has to lodge his BAS. He does this and pays $1,405.
Annual GST return
At the end of the financial year, Raj receives his annual GST return. He does not claim any fuel tax credits on this form as it is only to account for any difference between his actual GST liability and his GST instalments.
See also:
- What you need to do with your quarterly GST and PAYG instalment notice
- Completing your quarterly GST instalment notice