Posted on 18 October '12 by , under General News.
Changes made to the Fuel Tax Credit system (FTC) on 1 July have to potential to significantly impact FTC entitlements for many SMEs.
Businesses that have a fleet of more than one vehicle will need to familiarise themselves with the changes to avoid paying too much tax.
The biggest change is that fuel used in off-road activities, such as forklifts will become entitled to the full credit rate. Before 1 July such vehicles only qualified for a half credit rate.
The other major change involves the taxation of gaseous fuels (LNG, LPG and CNG). These fuels that are supplied for use in non-transport activities were previously not subjected to tax. The carbon tax now applies to these fuels. They will now only receive a partial exemption from tax on gaseous fuels.
Users of non-transport gaseous fuels may be able to recover some of the carbon tax placed on the fuel if their business is classified within an industry or use that is exempt from the clean energy measures.
The following table summarises the impact of the changes for the fuel tax credit update.
|Petrol (cents per litre)||5.52||5.796||6.096|
|Diesel and other
liquid fuels (cpl)
|LNG and CNG
(cents per kg)