Practical Compliance Guideline
Fuel tax credits - practical compliance methods for farmers in disaster affected areas
|Table of Contents
|What this Guideline is about
|Date of effect
|Which entities are covered by this Guideline?
|What are the accepted methods?
|Method 1 - working out litres of taxable fuel acquired in the tax period
|Method 2 - determining the day on which all taxable fuel is taken to be acquired
|Tax periods and postcodes applicable
|Affected ANZSIC codes
Relying on this Guideline
This Practical Compliance Guideline sets out a practical administration approach to assist taxpayers in complying with relevant tax laws. Provided you follow this Guideline in good faith, the Commissioner will administer the law in accordance with this approach.
What this Guideline is about
- calculate the number of litres of taxable fuel they acquired in the tax period, and
- identify the rate of the fuel tax credit in force on the day the taxable fuel was acquired.
2. These requirements can result in an additional compliance burden for entities in the agricultural industry when affected by natural disasters. To alleviate some of the burden, this Guideline provides some acceptable, practical compliance methods to assist these claimants in meeting their obligations.
Date of effect
Which entities are covered by this Guideline?
- Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC) codes representing that entity's business operations in a postcode for which an activity statement lodgment and payment deferral has been granted due to a natural disaster (refer to Appendix 1 of this Guideline), and
- an entitlement to fuel tax credits for taxable fuels acquired for use in carrying on an enterprise under section 41 5 of the Fuel Tax Act 2006 (FTA).
- in a vehicle with a gross vehicle mass (GVM) of 4.5 tonnes or less travelling on a public road, or
- where the environmental criteria have not been met in a diesel vehicle used on a public road with a GVM greater than 4.5 tonnes that is not used primarily on an agricultural property in carrying on a primary production business.
What are the accepted methods?
- how an entity can work out litres of taxable fuel acquired in the tax period, or
- The day on which all taxable fuel is taken to be acquired in the tax period.
Method 1 - working out litres of taxable fuel acquired in the tax period
Litres acquired in the tax period = Total $ / Average GST-inclusive price of fuel
Total $ means the total dollar spend on taxable fuel during the tax period.
Average GST-inclusive price of fuel for the tax period is the average fuel price for the relevant fuel type in your area of operation as shown on the Australian Institute of Petroleum (State and National prices) website (aip.com.au/pricing/pump-prices)
Method 2 - determining the day on which all taxable fuel is taken to be acquired in the tax period
11. The fuel tax credit rate for all the taxable fuel acquired during the tax period in Appendix 1 of this Guideline will then be the one rate.
Commissioner of Taxation
22 March 2019
Tax periods and postcodes applicable
12. For all taxable fuel acquired for use in carrying on your enterprise in an affected postcode during the tax periods, see the lodgment and payment deferral information for natural disasters.
13. The affected claimant entities are involved in cultivation or gathering in of horticulture, grains and crops and also the breeding and rearing of livestock and other farm animals. The affected ANZSIC codes are Subdivision A - 01 Agriculture (codes 011 to 019) listed below.
|Nursery and Floriculture Production
|Mushroom and Vegetable Growing
|Fruit and Tree Nut Growing
|Sheep, Beef Cattle and Grain Farming
|Other Crop Growing, for example sugar cane, cotton
|Dairy Cattle Farming
|Other Livestock Farming, for example horse, pig, beekeeping
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