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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.

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Protect yourself from early super release scams

August 7, 2018

When it comes to protecting your nest egg, avoid getting caught out by a promoter of an illegal early release super scheme.

Early release super scheme scams will involve a promoter contacting you and offering to help you access your super early. They usually target individuals under significant financial pressure or those who are not knowledgeable about super laws and the repercussions and penalties involved in illegally accessing your super.

You can only access your super when you meet a condition of release.

Generally, when you:
– Are 65 years old (even if you have not yet retired).
– Reach your preservation age and retire.
– Reach your preservation age and begin a transition to retirement income stream while still working.

There are special circumstances where you may be able to access your super early.

These special circumstances include:
– Severe financial hardship
– Temporary or permanent incapacity
– Compassionate grounds
– Temporary residents leaving Australia
– Super death benefits (inheriting super)
– Super less than $200
– Terminal medical condition

To avoid falling for an illegal early super release scam, be wary if the promoter:
– charges high fees and commissions;
– requests identity documents;
– claims you can access your super and put the funds towards whatever you wish;
– and tries to persuade you to transfer or rollover your super from your existing fund to a self-managed super fund (SMSF) in order to access your super before you are legally entitled.