With the rise in petrol prices making everyone’s eyes turn to the Federal government for some relief, businesses may be feeling the pinch of the additional expense in running their vehicles.
Whether you’re a business owner or simply an individual that uses their car for work-related purposes, fuel is a taxation topic that you might want to revisit with your tax agent.
As a business owner, you may be eligible to claim fuel tax credits. This provides businesses with a credit for the fuel tax (excise or customs duty) that’s included in the price of fuel used in
This amount depends on when the fuel is acquired, what fuel is used and the activity you use it in. The rate of tax credits may change regularly, so it’s important to check the rates each time you do your business activity statement (BAS).
To make a claim for fuel tax credits you must be registered for:
These fuel tax credits can be claimed for eligible fuel that was acquired, manufactured/imported and used in your business.
Some fuels and activities may be ineligible to claim fuel tax credits on. These include
Consulting with a tax professional about the fuel tax credit may be an avenue to pursue if you are a business owner concerned about the increase in expenditure around fuel.
In general, there are three rules to how you need to claim fuel as a work-related deduction:
The second point is not just for those whose primary income is derived from driving, such as couriers and rideshare drivers. Any work-related trip where fuel was used can be claimed EXCEPT your commute. This is technically classified as private, and cannot be claimed.
There are limited circumstances where it may be okay to claim such travel as a deduction. These include: