ATO announces fuel tax credit increase


ATO says fuel tax credit rates and biodiesel rates will increase from August 1

The ATO announced an FTC rate hike

The Australian Taxation Office has released details of an upcoming Fuel Tax Credit (FTC) increase in line with the indexation of fuel excise duty.

The ATO says FTC rates will increase beginning August 1 by a Consumer Price Index (CPI) escalation factor for rates of 1.040.

From March 30 to September 28, 2022, the ATO advises that the excise duty and equivalent customs duty rates for gasoline, diesel and all other fuels and gasoline products (except aviation fuels) will be lowered.

The ATO says FTC rates have risen in line with the upward movement of CPI and inflation, with rates indexed twice a year in February and August.

The biodiesel tariff will also increase again from August 1 after previously increasing on July 1 this year.

RELATED ARTICLE: Shearer Says Government Is Rolling The Dice On FTC

According to the Australian Trucking Association (ATA), the ATO says excise rates will be temporarily reduced for six months until the end of September.

Meanwhile, transport companies will not be able to claim FTC for use in heavy vehicles to travel on public roads.

In effect, the road user charge exceeds the excise duty paid, reducing the FTC rate to zero.

If workers acquired fuel during this period which includes the higher raid paid by the manufacturer or distributors before March 30, then the duty paid may be higher than the FTC the worker can claim.

If operators are having trouble paying their Business Activity Statements (BAS) on time, the ATO says they can ask for more time to pay the difference.

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