Are You Eligible to Claim Fuel Tax Credits (FTC)?

Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) that’s included in the price of fuel used in:

machinery
plant
equipment
heavy vehicles
light vehicles travelling off public roads or on private roads.

The amount depends on when you acquire the fuel, what fuel you use and the activity you use it in. Fuel tax credits rates also change regularly so it’s important to check the rates each time you do your business activity statement (BAS).

Some fuels and activities are not eligible including fuel you use in light vehicles of 4.5 tonnes gross vehicle mass (GVM) or less, travelling on public roads.

On public roads

A public road is a road that is available for use by members of the public. This includes toll roads, bus lanes and busways.

You can claim fuel tax credits for fuel you use in a heavy vehicle on public roads. This includes using fuel for:

travelling on public roads
movement along public roads – which is not considered travel.

If you use diesel in your heavy vehicle for travelling on public roads and it was manufactured before 1 January 1996, you need to meet an environmental criterion before you can claim fuel tax credits.

For travelling on public roads

Travelling begins when a vehicle starts to move and ends when it arrives at a destination, regardless of the distance. Fuel is used for travelling when it is used for:

propelling the vehicle along public roads, including stopping or idling (such as idling to keep within a schedule or at a layover on a public road) in the course of the journey
all aspects of the vehicle’s function that are for the vehicle’s operation, such as the use of lights, brakes, power-steering, windscreen wipers and powering the air-conditioning unit of the vehicle’s main cabin when travelling.

The fuel tax credit rate for fuel used in heavy vehicles for travelling on public roads is reduced by the road user charge (which is subject to change). The road user charge currently reduces any fuel tax credits to nil for gaseous fuels.

When calculating fuel tax credits for fuel used when travelling on public roads, use the ‘used in heavy vehicles for travelling on public roads’ rate.

Records you need to keep

If your heavy vehicle was manufactured before 1 January 1996 you must be able to show that it has met an environmental criterion.

Acceptable records include vehicle use and maintenance records, such as:

receipts or dockets for oil and replacement parts
mechanical invoices for servicing/repairs
maintenance schedule documentation
a DT80 test report from a registered test facility
a membership certificate or equivalent from an accredited audited maintenance program.

If your vehicle is manufactured on or after 1 January 1996 you must be able to demonstrate this.

Movement along public roads

Travelling does not include the movement of a vehicle undertaking road construction, maintenance or repair on the part of the road being constructed, maintained or repaired, such as by a grader or bulldozer.

The fuel tax credit rate for this activity is not reduced by the road user charge. Use the rate for ‘All other business uses’ in the rates table.

Vehicles are often engaged in both travel and other movement or activities as part of their operations. When claiming fuel tax credits, it is important you use the correct rate for each type of activity.

Are you paying your employees’ Superannuation on time?

Single Touch Payroll (STP) reporting, combined with improvements in super funds’ reporting through the Member Account Transaction Service (MATS) means ATO now have near real-time data to show employers’ compliance with their super guarantee (SG) obligations.

ATO will use this data to help them prevent and correct late or under-payment of employer SG contributions, to improve community confidence that Australian workers are receiving correct SG entitlements, on time.

ATO will soon reach out by letter, email or phone to employers where they have not met their SG obligations. They will:

request lodgment of super guarantee charge statement(s), if you have paid late or under-paid their SG obligations in a previous quarter
remind you to pay your current quarterly SG obligations by the due date.

Airbnb isn’t just a hobby, it’s a business – that’s the message from the ATO

Airbnb isn’t just a hobby, it’s a business.

That’s the message from the Australian Taxation Office to those who use the popular home-sharing service to lease out their properties.

More than 200,000 Airbnb homeowners will be affected.

Airbnb sent an email out to its Australian members on Thursday night, warning that their personal details – names, addresses and emails – would be given to the ATO.

“Airbnb is currently under legal notice by the Australian Taxation Office (ATO) to share information concerning your hosting activity from the period from 1 January to 30 June 2019,” the email read.

The move comes after the ATO promised to force those working in the so-called “gig economy” to pay their fair share of tax.

The ATO believes people are refusing to declare the income they get from using Airbnb because they believe it’s just a hobby.

Failure to declare income to the tax office could result in heavy penalties and even jail time.

The crackdown could see also result in an increase in prices for those looking to stay in Airbnb properties.

Reporting asset disposals for Capital Gains Tax purposes

As ATO’s data-matching capabilities increase they are paying close attention to capital gains made on shares, property and cryptocurrency.

Advise us about your asset disposals, which can include an asset’s sale, loss or destruction. The type of capital gains tax (CGT) event that applies can affect:

how a capital gain or loss is calculated
when it is included in a net capital gain or loss.

Good records will help us work out a capital gain or loss correctly when you dispose of an asset. You generally need to keep records relating to any CGT event, including asset disposals, for at least five years after the year in which the event occurred.

You should also keep records for any net capital losses, which you may be able to offset against capital gains in a later year. Once a loss is offset against a capital gain, you should keep your records of the CGT event that resulted in the loss for:

two years (for individuals and small businesses)
four years (for other taxpayers).

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