CALL US: (07) 3367 0999 | EMAIL US:

Fuel tax credits – rate change

On 1 August 2017, fuel tax credit rates increased. Some of these rates also changed on 1 July 2017, due to a change in the road user charge and an annual increase to excise duty rates on biofuels.

Fuel tax credit rates change regularly – they are indexed twice a year, in February and August, in line with the consumer price index (CPI).

Below are the rates for fuel acquired from 1 August 2017 to 31 January 2018.

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)
Liquid fuels, i.e., diesel or petrol Cents per litre 14.5 40.3
Blended fuels: B5, B20, E10 Cents per litre 14.5 40.3
Liquefied petroleum gas (LPG) (duty paid) Cents per litre 0.0 13.2
Liquefied natural gas (LNG) or compressed natural gas (CNG) (duty paid) Cents per kilogram 0.0 27.6
Blended fuel: E85 Cents per litre 0.0 10.55
B100 Cents per litre 0.0 2.7

Claims for packaging or supplying fuels can use the ‘all other business uses’ rate for the appropriate eligible fuel type.

For businesses that claim less than $10,000 in fuel tax credits in a year, to simplify your claim use the rate that applies at the end of the BAS period.

Business
advice

taxation
planning

compliance
services

News

Investing in shares vs property in SMSFs

March 19, 2020

Shares and property are two popular investment options for those with a self-managed super fund (SMSF). However, they both have very different attributes and choosing the one that will achieve the best outcome for an SMSF depends on your personal goals and situation.

While the price of shares can vary drastically, property is a relatively stable asset, making it appealing to those who want more security and predictability. Property prices are also negotiable unlike shares, and you can generally borrow money at a lower rate for property purchases.

It may seem hard to find the perfect investment property, but older and undercapitalised properties can be renovated for profit. However, returns from property rentals can be dented due to factors such as land tax, utilities and rates, maintenance and tenancy vacancies.

Shares are more dynamic and volatile than property. One advantage is the accessibility of investing in shares, as you can enter the share market with a few thousand dollars – much less than what you need to invest in a property.

Maintaining a portfolio of quality shares that pay tax-effective dividends may be a good way to fund retirement. With the right portfolio allocation, shares also have the potential to provide a better, stronger income than property rentals, as long as that income is sustainable and increasing.

Property can generally be used as a wealth-creation tool, while shares can create a reliable retirement income. For those who can afford to put more money into investments, it may be a good idea to consider investing and diversifying in both. If you’re unsure about which investment option is right for you, seeking financial advice may be the best option.