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Fuel tax credit mistakes

Fuel tax credits are provided to businesses who acquire, manufacture, import or use fuel in part of running a business.

These credits can greatly benefit business owners but it is important to get the claim right. The ATO sees common mistakes made when calculating and claiming fuel tax credits, including:

Wrong calculations
A common error is to calculate fuel tax credits using the cost of the fuel rather than the quantity of fuel multiplied by the relevant rate. The correct formula is: quantity of eligible fuel x correct fuel tax credit rate = fuel tax credits.

Inaccurate records
You must keep accurate records of your fuel purchases and how the fuel is used in your business. If you claim less than $10,000 a year in fuel tax credits, you can use a range of documents to support your claims.

Using an incorrect rate
Fuel tax credit rates change every February. Check the rates before you lodge your BAS. The current rates for fuel acquired from 5 February 2018 to 30 June 2018 are as follows:

Eligible fuel type Unit Used in heavy vehicles for travelling on public roads All other business uses (including to power auxiliary equipment of a heavy vehicle)1
Liquid fuels, for example diesel or petrol cents per litre 15.1 40.9
Blended fuels: B5, B20, E10 cents per litre 15.1 40.9
Liquefied petroleum gas (LPG) (duty paid) cents per litre 0.0 13.3
Liquefied natural gas (LNG) or compressed natural gas (CNG) (duty paid) cents per kilogram 0.0 28.0
Blended fuel: E85 cents per litre 0.0 10.725
B100 cents per litre 0.0 2.7

Not checking the activity
A common mistake is to claim fuel tax credits using the ‘other business uses’ rate for heavy vehicles travelling on public roads. Rates differ depending on the activity they are used for.

Ineligible fuels
Claiming fuel used for private purposes, or for travelling on a public road in vehicles with a gross vehicle mass (GVM) of 4.5 tonne or less is a common error. If you are unsure if about the eligibility of your fuel type and usage, contact one of our accountants today.

Posted on 16 April '18 by , under Tax.

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The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

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Check employer contributions
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Gather the relevant information
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