Here, you will find essential information regarding the Fuel Tax Credit 2024: Calculator, Rates, What is Fuel Tax Credit? How to Claim it? The fuel credit is delivered to businesses operating fuel-powered tools in Australia; this is a rebate on some of the excise or customs duty taxes paid for fuel. The Australian Tax Office asserts the credit when you submit your Business Activity Statement. With the help of the tax credit calculator, businesses can work out their credit statements. To know more about the Fuel Tax Credit 2024, what it is, how to claim it, and more, continue browsing this article.
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Fuel Tax Credit 2024
Businesses operate their vehicles in a prospective manner that routes the business fleet. Under the FTC system, the fuel used in equipment, heavy vehicles, plants, machinery, and light vehicles is entitled to a tax credit. These credits are meant for 4.5 tonnes of gross mass traveling on off-public roads and private roads, and the rate varies according to fuel consumption.
The fuel tax credit is an essential entitlement for many commercial transport operators based on apportioning fuel uses between eligible shiftings. In 2024, the on-road FTC rate will temporarily decrease to 0, following the government’s judgment to halve the fuel excise rate. This measure was reverted back in September 2023, and since then, the price of fuel has continued to rise. The tax is one of the biggest operating commercial fleets for businesses.
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Tax Credit Calculator
Businesses registered for the tax credit can use the credit calculator for fuel acquired for business use and for any adjustments or corrections to a tax credit from a previous year’s BAS. The fuel tax credit is adjusted twice a year, and the calculator shows rates acquired both before and from the date the tax rate increases. While making a claim calculator, define the fuel type and amount acquired for manufacture or import during the duration of BAS.
The calculator specifies the basic method and percentage use method. Under the basic method, the Fuel Tax Credit calculator determines the quality of taxable fuel used for business activities, and the percentage method is specific to a reliable percentage of taxable fuel used in business activity over a number of taxation periods. The tax credit is accurately determined through public and non-public road use and specifies the complex analysis task, often resulting in conservative FTC amounts.
Tax Credit Rates
For the year 2024, the Fuel Tax Credit rates vary according to the period you acquired the fuel. The rate is specified according to the business activities statement that involves:
Fuel acquired from 5 Feb 2024 to 30 Jun 2024
| Fuel Type (Unit: cents per litre) | Used in heavy vehicles, traveling on public roads | For all other businesses uses |
| Liquid Fuels | 20.8 | 49.6 |
| Blended Fuels: B20, B5, E10 | 20.8 | 49.6 |
| Blended Fuel: E85 | 0 | 21.29 |
| Liquefied Petroleum Gas | 0 | 16.2 |
| Liquefied Natural Gas | 0 | 34 |
| B100 | 0 | 13.2 |
These are the tax credit rates for 2024 till June 30. The heavy vehicle user charge increases by 6% each year. The packaging or supplying fuel rates are appropriate according to fuel type, and the road user charge for gaseous fuel is nil.
What is Fuel Tax Credit?
The FTC program lets businesses reduce their taxable amount for specific fuel costs. It encourages their production and use of fuel from renewable sources, and these credits are generally not available for individual taxpayers. The FTC varies from a REC, a tracking measure for those who bear their green energy to the grid.
The landscaping, manufacturing, farming, and construction companies benefit from the Fuel Tax Credit. The Internal Revenue Service charges these taxes mainly on fuels such as diesel and gasoline under specific circumstances. These credits give full or partial credit prices that include the fuel used in business machinery, equipment, light or heavy vehicles, and plants.
How to Claim It?
For claiming the Fuel Tax Credit, first, you are needed to check whether you are eligible for the credit. After meeting all the eligibility conditions, you are needed to have a registered business for GST and for Fuel Tax.
Check the time limit for your claim and review the amount of fuel you can claim by conserving when you got the fuel, the business activities you are using, and the type of fuel you use.
Calculate the tax credit, check the credit rate, and claim your credit by recording it in your income tax return file at Assessable Government Industry Payments.