• Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Adjustments

    Making an adjustment may increase or decrease your fuel tax credit entitlement. A decrease may mean you have to repay a debt to us.

    If an adjustment results in an increase in your fuel tax credit entitlement, then you add the dollar amount of the adjustment to your fuel tax credit entitlement at label 7D (Fuel tax credit) on your BAS.

    If an adjustment results in a decrease in your entitlement, then you have been overpaid fuel tax credits. Write this dollar amount at label 7C (Fuel tax credit over claim) on your BAS.

    Types of adjustments

    You may have to make a fuel tax credit adjustment on your BAS for a number of reasons. The table below outlines how to make an adjustment in a range of situations.

    Table 1: Types of adjustments

    Type of adjustment

    Increase or decrease in entitlement

    Which label to complete on your BAS

    When to make the adjustment

    Change to your intended use of fuel

    Used more fuel for an eligible use than intended.
    See example 1.

    Increase

    Label 7D

    Fuel tax credit

     

     

     

     

    On the BAS for the tax period in which you become aware of the actual use of the fuel.

    Used less fuel for an eligible use than intended.
    See example 2.

    Decrease

    Label 7C

    Fuel tax credit over claim

    Used the fuel for a different eligible use than intended, increasing your entitlement.
    See example 3.

    Increase

    Label 7D

    Fuel tax credit

    Used the fuel for a different eligible use than intended, decreasing your entitlement.
    See example 4.

    Decrease

    Label 7C

    Fuel tax credit over claim

    Fuel lost, stolen or otherwise disposed of

    Claimed for fuel for an eligible use and it was later lost, stolen or otherwise disposed of, decreasing your fuel tax credit entitlement.
    See example 5.

    Decrease

    Label 7C

    Fuel tax credit over claim

    On the BAS for the tax period in which you become aware of the loss, theft or disposal of the fuel.

    Attention

    Generally, when calculating your fuel tax credit entitlement, use the fuel tax credit rate that applied at the time you acquired the fuel.

    Rates are subject to change annually to 1 July 2015, then 6 monthly thereafter, due to changes in the carbon price.

    If you pay your GST in instalments and are registered for fuel tax credits, special rules apply. Under these rules, an adjustment may be delayed to a later tax period. For more information, refer to Fuel tax credits and GST instalments.

    End of attention

    Example 1: Change in the use of fuel – used more fuel than intended, increasing entitlement

    Peter has a grounds maintenance business. He buys 1,500 litres of diesel on 21 July 2012, intending to use 500 litres in his slashers and mowers (eligible for fuel tax credits), and 1,000 litres in his two tonne diesel truck that travels on public roads (ineligible for fuel tax credits). Peter claimed fuel tax credits on his September quarterly BAS of $159 (500 x $0.31933) for his intended use of diesel in the slashers and mowers, which includes the carbon charge for diesel.
    On 15 October, Peter sells his truck and buys a two tonne petrol utility for the same use (also ineligible for fuel tax credits), so he decides to use the remaining diesel (1,000 litres) in his slashers and mowers.
    Peter can claim an increase in fuel tax credit entitlements of $319 (1,000 x $0.31933) at label 7D (Fuel tax credit) in his December quarterly BAS as this is the BAS for the tax period in which he became aware of the changed use of the fuel.

    Example 2: Change in the use of fuel – used less fuel than intended, decreasing entitlement

    Chris has an earthmoving business. On 21 July 2012, he buys 4,000 litres of diesel intending to use it in his front-end loader and backhoe working on-site (eligible for fuel tax credits and subject to the carbon charge). Chris claims fuel tax credits of $1277 (4,000 x $0.31933) on his September quarterly BAS.
    In October, Chris changes his business activities. He sells his backhoe and uses 2,000 litres of the diesel in his one tonne utility driving between sites. Chris has used less fuel in an eligible activity than he claimed for as the actual use of the 2,000 litres in his utility is ineligible for fuel tax credits.
    Chris must decrease his fuel tax credit entitlements by $638 (2,000 x $0.31933) at label 7C (Fuel tax credit over claim) on his December quarterly BAS as this is the BAS for the tax period in which he becomes aware of the changed use of the fuel.

    Example 3: Change in the use of fuel – used for a different eligible use, increasing entitlement

    Jess has a primary production business. On 15 July 2012, she buys 5,000 litres of diesel intending to use 2,000 litres in her 10 tonne truck carrying produce to the rail head and 3,000 litres in her tractors and harvester. Both activities are eligible for fuel tax credits but different rates apply. Jess claimed $1,397 on her September quarterly BAS (2,000 x $0.12643 = $252.86) plus (3,000 x $0.38143 = $1,144.29). Jess's primary production business activity is exempt from the carbon charge.
    In October, her truck broke down. Jess had only used 1,000 litres in her truck, so she used the remaining 1,000 litres (intended for her truck) in her tractors and harvester instead. As Jess has used the fuel for a different use than intended, her actual entitlement to fuel tax credits is $1,652 (1,000 x $0.12643 = $126.43) plus (4,000 x $0.38143 = $1,525.72).
    Jess can claim an increase in fuel tax credit entitlements of $255 ($1,652 – $1,397) at label 7D (Fuel tax credit) on her December quarterly BAS as this is the BAS for the tax period in which she becomes aware of the changed use of the fuel.

    Example 4: Change in the use of fuel – used for a different eligible use, decreasing entitlement

    Leo is a commercial fisherman and only uses his boat for business purposes. He buys 12,000 litres of diesel on 28 August 2012, intending to use it in his boat (eligible for fuel tax credits and an activity exempt from the carbon charge), so Leo claimed fuel tax credits of $4,577 (12,000 litres x $0.38143) on his September quarterly BAS.
    In October, Leo uses 1,000 litres of the diesel in his forklift, which he uses on the dock to load his catch for transportation. Leo has used the fuel for a different eligible use than intended, decreasing his entitlement. As it has a different rate, Leo is only entitled to 31.933 cents per litre for the 1,000 litres he used in the forklift as it includes the carbon charge.
    Leo calculates the adjustment by subtracting his actual entitlement from the original amount of fuel tax credits he claimed.
    Leo’s actual entitlement is $4,515 (11,000 x $0.38143 = $4,195.73) plus (1,000 x $0.31933 = $319.33).
    Leo must decrease his fuel tax credit entitlements by $62 ($4,577 – $4,515) at label 7C (Fuel tax credit over claim) on his December quarterly BAS as this is the BAS for the tax period in which he becomes aware of the changed use of the fuel.

    Example 5: Fuel lost, stolen or otherwise disposed of, decreasing entitlement

    Gerry stores his diesel in a bulk tank at his earthmoving business. In September 2012, Gerry buys 5,000 litres intending to use it in his front end loader (eligible for fuel tax credits but subject to the carbon charge) so, on his September quarterly BAS he claimed fuel tax credits of $1,596 (5,000 x $0.31933).
    In October, the tank is damaged and Gerry estimates half the fuel (2,500 litres) is lost. Gerry cannot use that fuel in his business so he is not entitled to fuel tax credits for the lost fuel.
    Gerry must decrease his fuel tax credit entitlements by $798 (2,500 x $0.31933) at label 7C (Fuel tax credit over claim) on his December quarterly BAS as this is the BAS for the tax period in which he becomes aware of the loss of the fuel.
      Last modified: 23 Jul 2013QC 35869