Fact sheet for fuel tax credit claimants Fuel tax credits — changes from 1 July 2012 This fact sheet provides information about changes to fuel tax credit rates that apply from 1 July 2012, including the introduction of the carbon charge. CHANGES TO FUEL TAX CREDIT RATES From 1 July 2012, fuel tax crect rates are changing. You may be affected by one or mare ofthe folowing rete changes rating to: « fiquid fuels (eg diese, petrol or fuel oi) used in some offroad business activities 1 the introduction of a carbon charge tr heavy vehicles traveling on a public road 12820U Tues (og liquefied petroleum gas (LPG) 18 some blended Iquid fuels, ‘Also, when calculating your fuel tax credits, you wil need to use the rate that applied when you acquired the fuel. There is {an exception to this, see ‘Use the rate when the uel was ‘2cquiea’ on page 2. © For fuel tax cresit rates for fuel acquired from July 2012 (other than blended and gaseous fuel), reer to the table on page 3, For fual tax credit rates for blended fuels or gaseous fuels acquired from 1 July 2012, refer to our we | wwnmato.gov.au/fuelschemes and search for Fuel tax credits rates and eligible fuels (NAT 71863}, ‘These rates take into account ‘You wil continue to claim your fuel tax credits on your business activity statement. changes Isted above, @ Fusiis taxable if excise or customs duty is required to be paid on it. All gaseous and liquid fuels mentioned in this fact shect are taxable fuel unless otherwise stated LIQUID FUELS USED IN SOME OFF-ROAD BUSINESS ACTIVITIES Liquid fue are petrol, diesel and other combustible fossil fues such as kerosene, rinera turpentine, white sprit, toluene, heating all and some sovents. Fual ethanol and biodiesel are rot fossi fuels. From 1 July 2012, the fuel tax cred rate willinerease for liquid fusls used in offroad activites sigible since 1 Juy 2008, (currenty 19.0715 cents perlite), These actives Include (out are not ented to) ‘= construction 18 manufacturing sm wholesale/retall 13 property management 1 landscaping, ‘The rates for fuels used in most off-road activites will bo reduced by a carbon charge at the same time. Refer to the table on page 3 for fue! tax credit rates you wil need to use from 4 July 2012, Australian Government hieFUEL TAX CREDITS ~ CHANGES FROM 1 JULY 2012 ‘THE INTRODUCTION OF A CARBON CHARGE Under new Clean Energy laws, from 1 July 2012 fuel tax credit rates will be reduced by a carbon charge for fuels and activites excluding those listed below. Fuels not affected by a carbon charge ‘The carbon charge will not affect the fuel tax credit rates for: 1 fuels used in| = heavy vehicles with a gross vehiole mass (GVM) grester than 4.5 tonne traveling on a public road - diesel vehicles acquired before 1 July 2006 can equal or excaad 4.6 tonne — spectied actives in the agriculture, fishing or forestry industies — activites that do not involve combustion ofthe fuel ~ for example, fuel used to clean machinery or as @ mould release agent «= renewabie fuels such 2s biociesel or fuel ethanol. ‘A.carbon charge is an amount equa tothe orice of carbon ‘emissions from the use of iquid or gaseous fuels, This ‘charge varies forthe diferent fuels depending on their carbon, emissions, Carbon charge amounts wil increase annually futher reducing {up tax credit rates over the next thres years Urtl 30 June 2015. ‘The rates wil then be adjusted every six months from + Juy 2015, © Forthe tue tax croct rates for fuel acquired from 4 July 2012, refer to the table on page 8. These rates take into account a carbon charge where eppiicebee. HEAVY VEHICLES TRAVELLING ON PUBLIC ROADS “The fu! tax cect rat for heavy vehicles thet use taxable fuel and travel on a public road is reduced by the road user charge, which i subject to change. From 1 Juy 2012, aftr subtracting the road user charge of 25.8 cents por ite, the fuel tax crit rate for iquid fuels for example, diese! or peta} used in heavy vehicles is 12.643 cents per ltr. For duty paid gaseous fuels (LPG, LNG and CNG) Used in heavy vehicles traveling on a public road, the road user charge reduces any fue tax credit entitlement to ‘Aeawy vehicle is one that hes gross vehicle mass (GVM) greater than 4.5 tonne. Diesel vehices acquired before 1 duly 2006 can equal 4.6 tonne GVM. USE THE RATE WHEN FUEL WAS ACQUIRED Itisimportant you use the corect ate for fuel you acquire and use in eligible business actives, From 1 July 2012, you need to use the fuel tax credit rato in effect on the date you acquired the fuel. This may not necessarily be the rate in effect when you use the fuel or claim your fuel tax credits. This means you would use diferent rates for fuel used in the same acthity f some of the fuel was ‘acquired in periods that had diferent fuel tax cracit rates, © Fecheavy vticies ravetng on a pubic oad, you need {bse thera mn ofect at te begining othe tex Dod covered by your BAS. EXAMPLE, ‘Bob is completing his July 2012 BAS, In June 2012, he purchases 5,000 ites of diesel for his front-end loader Which he uses in July. Bob cid not claim fuel tax credits for tis fuel in his June BAS, so Is claiming itin his July BAS instoad. When caloulating his fuel tax crecits for his July BAS he will nees to use the rate that applied when he purchased the fue! in June, which Is 19.0715 cents per lire. Ihe purchased the fuel ater 1 July 2012, he would use the rate in effect in July 2012, which is 37.983 cents per ite, You can use the rates in the table on page 3 for liquid fuels (such as petrol, diesel or fuel oi) ou acquire from t July 2012. (Other than the rate for heavy vehicies, the rates in the table account forall changes fram 1 July 2012, including the: carbon charge. © For current and previous years! rates and rates ‘for blended and gaseous fuels, visit our website at ‘wwwato.gov.au/fuelschemes and search for Fuel tax ccrecits rates and eligible fuels (NAT 71563}.FUEL TAX CREDITS - CHANGES FROM 1 JULY 2012 ‘TABLE: Fuel tax credit rates for liquid fuels from 1 July 2012 (excluding blended and gaseous fuels) Business use ‘can equal or exceed 4.5 tonne GVM, ‘Specilied of-rosd activities in: agriculture a fishing ve forestry Other off-road business activities where the fuel is combusted, for example: a mining = construction 13 marine or rail ransport a manufacturing {including emergency vesse's) m wholesale/etal 8 nursing and medical 1 property management = bumer applications «landscaping 2 electricity generation by ‘commercial generation plant, stationary generator or a Non ; 1 fuel you use directly as a mould release 1 fuel you use as an ingredient in the manufacture of products not for combustible use. Packaging fuels in containers of 20 lires or less for uses other than in an intornal combustion engine. ustible uses, euch as: ‘Supply of uel for domestic heating. Ina vehicle (nclucing emergency vehicles) greater than 4.5 tonne GVM traveling on a pubic road — diesel vehicles acquired before 1 July 2006 Taxable liquid fuel For fuel acquired from 1 July 2012 Taxable liquid fuels 12.643 cents per tre’ ~ for example, ciesel or petal ‘Taxable iquid fuels 38.143 cents per lve for example, diesel or patrol ~ Pevol - 82,623 cents per ie! Diesel and other ‘31,999 cents per litre? liquid fuels ‘Taxable liquid fuels 98.148 cents per ire = for example, diesel or petal Mineral turpentine, white 98.148 cents por lire pir, Kerosene or certain other fuels, Heeting oi and kerosene 7,90 cents per lire? 1 Tse accounisfo:hrod use charge, wich sujet cherga 2 erates or rac sete oxo ors carbo chara, wich ara for ech ue ni auto chee. GASEOUS FUELS Gaseous fuels ae iquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natura! gas (CNG). Duty paid LPG, LNG or CNG refers to fuel that is supplied for ‘ransport use, buts subsequent used in eligible at-road ectivites. From 1 July 2012, the fuel tax credit rates for duty paid gaseous fuols wal change. The rates are affected by: 1 an increase in the rates as part ofa gradual phasing in of duty ‘on gaseous fuels 1 reduction in the rates for some activities by a cartoon charge. ‘You cannot claim fue! tax credits for gasoous fuss used in any vehicle vaveling on a public road and in most crcumstances, Yyou Cannot ciaim fuel tax crecits for gaseous fuels used for ‘on-transport purposes, © ou can find the fue tax cre rates for g2se0us fuels fom 1 July 2012 laccounting for the Carbon charge where applicable) on our website at www.ato.govau/tuelschemes and search for Fue! tax credits rates and ego fuels (NAT 71563)