The ATO says fuel tax credit rates and biodiesel rates will increase from August 1
The Australian Taxation Office has released details on an upcoming increase of the fuel tax credit (FTC) in line with fuel excise duty indexation.
The ATO says FTC rates will increase from August 1 by a consumer price index (CPI) indexation factor for rates of 1.040.
From March 30 to September 28, 2022, the ATO says excise and excise equivalent customs duty rates for petrol, diesel and all other fuel and petrol-based products (except aviation fuels) will be lowered.
The ATO says FTC rates have increased in line with the upward movement of CPI and inflation, with the rates being indexed twice a year in February and August.
The biodiesel rate will also increase again from August 1 after previously rising on July 1 this year.
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According to the Australian Trucking Association (ATA), the ATO says excise rates will be temporarily reduced for six months until the end of September.
In that time, transport companies won’t be able to claim FTCs for use in heavy vehicles for travelling on public roads.
This is because the road user charge exceeds the excise duty paid, which reduces the FTC rate to zero.
If workers have acquired fuel during this period that includes the higher duty raid paid by the manufacturer or distributors before March 30, then the duty paid may be higher than the FTC the worker can claim.
If operators are struggling to bay their business activity statement (BAS) payments on time, the ATO says they can reach out to request more time to pay the difference.