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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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News

Do you know where your super is?

February 21, 2019

If you’re not close to retiring, you may not be thinking about your super or where it is. Even if you are a way off from retiring, you should be keeping track of where your super has gone. $17.5 billion of super was lost in 2017-18, $420 million down from the previous year. If you are not paying attention to your super contributions, accounts and insurances, you may have lost super. You may also have unintentionally lost track of super if you have ever changed your name, address, job or lived overseas.

It is not uncommon for people to have multiple super accounts they have acquired over the years of working at different companies. Having multiple unused accounts can result in high fees that drain your untouched super or you could lose track of it completely. It is in your best interest to consolidate all super into one account that suits your retirement goals. When closing unused accounts, you should be mindful of any termination fees, insurance policies, investment options, and ongoing service fees.

If you have lost track of your super it may be held by either your super fund as a lost account or as an ATO-held account. The easiest way to consolidate super is through the myGov website, linking the ATO to records of your super funds