Fuel Taxation Determination

FTD 2006/2A4 - Addendum

Fuel tax: what records are required to be kept by taxpayers to substantiate a claim for a fuel tax credit?

FOI status:

Addendum

This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Fuel Tax Determination FTD 2006/2 to reflect changes to the Fuel Tax Act 2006 as a result of the Clean Energy Legislation (Carbon Tax Repeal) Act 2014.

FTD 2006/2 is amended as follows:

1. Paragraph 9

Omit the paragraph; substitute:

9. The FT Act and Fuel Tax (Consequential and Transitional Provisions) Act 2006 (Transitional Act) provide for different amounts for fuel tax credits between 1 July 2006 and 1 July 2012:

From 1 July 2006, you are entitled to a partial credit for taxable fuel, (including petrol), acquired for use in a vehicle with a gross vehicle mass (GVM) over 4.5 tonnes or diesel vehicles with a GVM of 4.5 tonnes acquired before 1 July 2006[6A] travelling on a public road, provided the use is in carrying on your enterprise.[7]
From 1 July 2006, you are entitled to a full credit for taxable fuel (including petrol) you acquire for use in carrying on your enterprise in electricity generation, burner applications and non-fuel uses (for example, use in manufacturing explosives).
From 1 July 2006, if you are a non-business taxpayer, you are entitled to a full credit for taxable fuel (including petrol) that you acquire for use in generating electricity for domestic use.
From 1 July 2006 to 30 June 2008 (inclusive), you are entitled to a full credit, if you are carrying on an enterprise and you acquire off-road diesel fuel[8] for use in specified eligible off-road activities as defined by the Energy Grants Act.
From 1 July 2008 to 30 June 2012 (inclusive), you are entitled to a half credit if you are carrying on an enterprise and you acquire off-road diesel fuel and petrol for use in activities for which an off-road credit under the Energy Grants Act was not previously available. From 1 July 2012 to 30 June 2014, you will need to consider carbon emission charge consequences under Division 43 of the Fuel Tax Act 2006 in working out your fuel tax credit entitlement amount.
From 1 July 2008 to 30 June 2012, you are entitled to a full credit if you are carrying on an enterprise and you acquire petrol for use in specified eligible activities for which you were entitled to an off-road credit under the Energy Grants Act. From 1 July 2012 to 30 June 2014, you will need to consider carbon emission charge consequences under Division 43 of the Fuel Tax Act 2006 in working out your fuel tax credit entitlement amount.
From 1 July 2011 to 30 June 2012, you are entitled to a full credit if you are carrying on an enterprise and you acquire for off-road use, alternative fuels such as biodiesel, ethanol, liquefied petroleum gas (LPG), compressed natural gas (CNG) and liquefied natural gas (LNG) and methanol. From 1 July 2012 to 30 June 2014, you will need to consider carbon emission charge consequences under Division 43 of the Fuel Tax Act 2006 in working out your fuel tax credit entitlement amount.
From 1 July 2011, you are entitled to a fuel tax credit if you are carrying on an enterprise and you acquire alternative fuels for use in a vehicle with a GVM over 4.5 tonnes travelling on a public road.[9]

This Addendum applies on and from 1 July 2014.

Commissioner of Taxation
30 July 2014

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Footnotes

See item 12 of Schedule 3 to the Transitional Act.

If subitem 10(3) and subitem 11(3) of Schedule 3 to the Transitional Act apply to you, then under subitem 10(4) and subitem 11(4) respectively, you are taken, for the purposes of section 43-10 of the FT Act to have acquired, manufactured in or imported into, Australia fuel for use in a vehicle travelling on a public road. The effect of subitem 10(4) and subitem 11(4) of Schedule 3 to the Transitional Act is that for fuel used in a vehicle travelling other than on a public road, the fuel tax credit is reduced under section 43-10 of the FT Act by the amount of the road user charge.

Off-road diesel fuel is defined in section 4 of the Energy Grants Act.

If subitem 10(3) and subitem 11(3) of Schedule 3 to the Transitional Act apply to you, then under subitem 10(4) and subitem 11(4) respectively, you are taken, for the purposes of section 43-10 of the FT Act to have acquired, manufactured in, or imported into, Australia fuel for use in a vehicle travelling on a public road. The effect of subitem 10(4) and subitem 11(4) of Schedule 3 to the Transitional Act is that for fuel used in a vehicle travelling other than on a public road, the fuel tax credit is reduced under section 43-10 of the FT Act by the amount of the road user charge.

References

ATO references:
NO 1-5II1LV5

ISSN: 1833-9662