Under the Federal Budget announcement, a 50% reduction to fuel excise will be implemented from 30 March 2022 until 28 September 2022. As a result of this, the Fuel Tax Credit rates, for fuel used by heavy vehicles travelling on public roads, has been reduced to nil. This will mean that those businesses who usually claim these types of fuel tax credits through their BAS will not be able to do so.
March 2022 Quarterly BAS
This will be prepared as usual, except any purchases of fuel on the 30th or 31st of March will need to be excluded from the Fuel Tax Credit calculations.
June 2022 Quarterly BAS
There will be no Fuel Tax Credits for this BAS.
All other business uses of petrol and diesel, e.g. including to power auxiliary equipment of heavy vehicles, or packaging and supplying fuel, will have a fuel tax credit rate of 22.1c per litre.
These changes have been implemented by the ATO as the road user charge exceeds the excise duty paid. The announcement by the ATO suggests this measure could also apply to the September 2022 quarter but there have been no rates issued, or firm guidance, on this yet. We will keep you posted.
If you have any queries on the above measures or what this will mean to your cashflow, please do not hesitate to contact us.
This article written by Renee Larsen, appeared in our April 2022 newsletter
