Update to fuel tax credit rates

Since 1 July of this financial year, the fuel tax credit (FTC) rates have changed multiple times due to a number of economic and Government policy reasons. Businesses that are registered for FTC are able to claim a credit on their Business Activity Statement (BAS) each quarter.

The applicable rate that can be claimed is based on the type of fuel used, how the fuel is used in the business, and the number of litres acquired for a specific period.

There has been a recent update to these rates from 1 February 2023, applicable to the current March 2023 quarter, and taxpayers should be aware of what rate they are able to claim when it comes to preparing and lodging their BAS with the ATO.

The ATO website provides a summary of the current and historical rates, as well as a useful FTC calculator than can be used to determine the tax credit claimable for a given BAS period. The calculator will incorporate the latest rates and help provide certainty around the correct credit to be reported to the ATO and claimed on your activity statement.

Please refer to the ATO website here.

Please also contact our team if you require any assistance in regards to calculating your FTC, have any questions around eligibility and registering for FTC with the ATO, or if you simply require any further information on the topic.