Tax office urges care when calculating fuel tax credits during the changeover to indexation
The Australian Taxation Office (ATO) has urged drivers and vehicle owners to double check their fuel tax liabilities and credits in the wake of this year’s return to indexation.
Fuel tax credit rates have increased retrospectively from November 10, when the indexation was applied.
They will also be indexed on February 1 and August 1 every year from 2015 – in line with the rise in fuel prices.
“Make sure you check the rates online before you complete each business activity statement,” the ATO advises.
Alternatively, the fuel tax credit calculator is also available as an app for both Android and Apple devices.
The ATO describes it as a “must-have tool now [that] rates are changing regularly”.
Businesses that have already submitted end-of-year BAS, covering fuel bought after November 10, will be entitled to more fuel tax credits.
Many industry watchers had been concerned that tax credits would not stay in line with the indexation of fuel prices, leaving drivers and vehicle owners out of pocket.
But the Federal Government was able to pass a raft of legislation in the Tax and Superannuation Laws Amendment Bill that included a balancing of fuel tax credits with the higher fuel prices.
The bill was passed on December 10, with the ATO now updating its tools and advice accordingly.