Fuel tax credit rates depend on fuel types

One of the changes has been the introduction of a carbon charge. The carbon charge has impacted fuel tax credit rates for fuels used in certain activities, although not for heavy vehicles with a gross vehicle mass of greater than 4.5t travelling on a public road or for renewable fuels such as biodiesel or fuel ethanol.

Fuel used in specified agriculture, fishing and forestry activities is exempt from the carbon charge, meaning civil engineers undertaking these activities are eligible for the full fuel tax credit rate of 38.143 cents per litre. These activities include:

• constructing earthworks, including dams, levee banks, windbreaks, contour banking and levelling or grading land for agriculture
• building troughs, channels, irrigation systems and drainage systems
• constructing and maintaining roads in a forest or plantation if they are integral to eligible forestry activities
• constructing ponds or other structures to contain fish to be farmed.

The ATO have provided a comprehensive breakdown of the new system along with practical examples for civil contractors. You can read more about the new fuel tax credit rates in the June, July & August editions of Earthmover magazine.

For more information on current fuel tax credit rates, visit www.ato.gov.au and search for Fuel tax credit rates and eligible fuels.