By Julie Abramson, CCF national policy director
In particular the average fuel consumption rate method is a substantial win for CCF team lobbying efforts. We have had the real benefit of on the ground practical insight and suggestions from one of our long standing South Australian members David Truran. Combined with the CCF team of SA, CEO Peter Nolan and myself, participated in ATO forums to achieve an outcome that will make compliance easier for members.
The CCF was concerned that particularly our smaller members, have a way in which they could accurately calculate diesel usage, for fuel tax credits purposes. So we believe the new method is practical, simple to use and most importantly, meets ATO requirements.
The ATO should also be commended, for being prepared to have an open mind about implementation of the laws in this area, and being willing to fully engage with industry. From our perspective it more than proves the worth of spending considerable resources on working through ATO forums and with ATO personnel. It also makes the point that your feedback on particular issues that concern you, really does make a difference whether fed directly to us, or to your local members of parliament.
The following information has been provided by the ATO.
ATO cuts fuel tax credits red tape
If you claim fuel tax credits for fuel you use in your business, there are two new methods of calculating your eligible litres that may be easier, the ATO reports.
They provide more options that may better fit the way you operate your business. They do not replace the basic calculation methods (constructive or deductive methods) or other methods (percentage use or estimate use methods).
Alternative percentage use method
The alternative percentage use method can be used for businesses where eligible fuel use is consistent over time. While this method can be used for any business with consistent eligible fuel usage, it is most suited for those that have medium to large fleets of vehicles or equipment.
To use this method, you need to establish a reliable percentage by taking a statistically sound sample of your fleet of vehicles over a four week period.
Average fuel consumption rate
The average fuel consumption rate method can be used for businesses that keep records of the hours their equipment is used. Businesses can simply work out their equipment's eligible litres by multiplying its operating hours by its average hourly fuel consumption rate.
You can either use the manufacturer’s guide for the consumption rate, or keep records over a four week sample period of the operating times and actual fuel used, to work out the average hourly fuel consumption rate.
More information: Keeping records and calculating eligible fuel (Nat 15230). This publication is available to download at www.ato.gov.au/fuelschemes, paper copies: 1300 720 092.
