fuel tax credits – how to complete your business activity

www.ato.gov.au/ fuelschemes
n phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday.
Fuel tax credits – how to complete your business activity statement Provides information about completing the fuel tax credit labels on your business activity statement and how to make adjustments, correct mistakes, lodge and pay.
Instructions for fuel tax credit claimants
© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA, 2012
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
PUBLISHED BY
Australian Taxation Office Canberra September 2012 JS 23670
OUR COMMITMENT TO YOU We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.
If you follow our information in this publication and it turns out to be incorrect or misleading, and you fail to comply with the law as a result, we must still apply the law correctly. However, we will take the fact that you followed our information into account when deciding what action, if any, we should take.
If you make an honest mistake in trying to follow our information in this publication and you fail to comply with the law as a result, we will take the reason for the mistake into account in deciding what action to take.
If you feel that this publication does not fully cover your circumstances, or you are unsure how it applies to you, you can seek further assistance from us.
We regularly revise our publications to take account of any changes to the law, so make sure that you have the latest information. If you are unsure, you can check for more recent information on our website at www.ato.gov.au or contact us.
This publication was current at September 2012.
Fuel TAx CredITs – HOW TO COmpleTe yOur busIness ACTIvITy sTATemenT 1
COnTenTs INTRODUCTION 2
GST instalment payers 2
label 7d – your fuel tax credits 5
How to work out your fuel tax credits 6
ADJUSTMENTS AND MISTAKES 9
Correcting mistakes 12
What if you cannot lodge and pay on time? 15
Expecting a refund? 15
Self assessment 16
MORE INFORMATION inside back cover
2 Fuel TAx CredITs – HOW TO COmpleTe yOur busIness ACTIvITy sTATemenT
Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) included in the price of fuel they use in machinery, plant, equipment and heavy vehicles for business purposes.
You may also be entitled to a fuel tax credit for compressed natural gas (CnG) that has been subject to the carbon pricing mechanism and used in specified agriculture, fishing or forestry activities.
From 1 July 2012, fuel tax credit rates have changed. You may be affected by one or more of the following rate changes: n an increase in the rate from 19.0715 cents per litre for
taxable liquid fuels (for example, petrol, diesel or fuel oil) used in some off-road business activities
n a carbon charge which reduces rates for some fuel types and activities (excluding specified agriculture, fishing, forestry and road transport activities and non-combustible fuel use)
n a decrease in the rate for heavy vehicles travelling on public roads
n changes in the rates for some gaseous fuels n changes in the rate for some blended liquid fuels.
For more information about these changes, refer to Fuel tax credits – changes from 1 July 2012 (nAT 74171).
You cannot claim fuel tax credits for: n aviation fuels n fuel you use in light vehicles of 4.5 tonne gross vehicle
mass (Gvm) or less, travelling on a public road n fuel you acquired but did not use because it was lost, stolen
or otherwise disposed of n some alternative fuels, such as ethanol and biodiesel that
have already received another grant or subsidy.
you must be registered for goods and services tax (GsT) and fuel tax credits before you can make a claim.
Fuel tax credit rates vary depending on what taxable fuel you use and how you use it in your business. The rate you can claim for road transport is also affected by the rate of the road user charge, which is subject to change.
Fuel tax credit rates are subject to change due to changes in the carbon charge, road user charge and excise duty increases for gaseous fuels.
To make sure you use the correct rates when calculating your fuel tax credits: n refer to Fuel tax credit rates and eligible fuels (nAT 71563) n phone us on 13 28 66 between 8.00am and 6.00pm,
Monday to Friday.
For more information about fuel tax credits, refer to: n Fuel tax credits for business (nAT 14584) n Fuel tax credits calculation worksheet (nAT 15634) n the fuel tax credit eligibility tool and calculator available
on our website at www.ato.gov.au/fuelschemes
The fuel tax credit eligibility tool can help you work out your eligibility for fuel tax credits and the rate at which you can claim.
The fuel tax credit calculator can help you work out your fuel tax credit entitlements as well as adjustments. It also provides a summary report you can use when completing your business activity statement (bAs).
GST GROUPS, BRANCHES AND JOINT VENTURES Fuel tax credit claiming arrangements vary for GST groups, branches and joint ventures: n The representative member of the GST group claims fuel
tax credits on behalf of the group. n Each GST branch claims fuel tax credits separately from
the parent entity. n The operator of a GsT joint venture claims fuel tax credits
on behalf of the participants of the joint venture.
GST INSTALMENT PAYERS If you pay GST in instalments, you can claim fuel tax credits on a quarterly basis. After you have registered for fuel tax credits, you will receive a quarterly bAs, regardless of whether you pay two or four GST instalments for the financial year, instead of receiving an instalment notice.
you only need to lodge a bAs if you want to claim fuel tax credits for the period, or if you have an adjustment to make for a fuel tax credit over claim.
Your fuel tax credits are not included in your pre-printed GST instalment amount.
For more information, refer to Fuel tax credits and GST instalments (nAT 15330).
InTrOduCTIOn
yOur busIness ACTIvITy STATEMENT below is a sample quarterly bAs. your bAs will contain all of your reporting requirements, so it may not look exactly like this.
SAMPLE: Business activity statement – front
This bar code is used by our electronic scanners to identify your bAs.
This is the reporting period that the bAs covers. It’s usually a month or a quarter.
The document Id is a unique identifier for each bAs you receive.
your Abn is your Australian business number.
These are important dates. They indicate when you have to lodge your bAs and when you have to make a payment.
This is the method (cash or non-cash) you have chosen to report GsT.
These are your contact details. We use this information to contact you if there is a problem with your bAs.
To make sure we scan your bAs correctly: n use a black pen n record whole dollars only – leave off the cents n do not use symbols such as +, –, /, $ n leave boxes blank if not applicable (do not write n/A) n if reporting a zero amount write ‘0’ (do not write nIl).
Methods of payment BPAY®: contact your fi nancial institution to make this payment from your cheque or savings account. Quote biller code 75556 and your EFT code (shown on the front of the payment slip) as the customer reference number.
Credit card: payments can be made online or by phone, a card payment fee applies. Go to www.ato.gov.au/howtopay or phone 1300 898 089. Direct credit: you can electronically transfer funds to the ATO’s direct credit bank account using online banking facilities. Use BSB 093 003, Account number 316 385 and your EFT code. Phone 1800 815 886 for assistance if required.
Direct debit: have your payment deducted from your fi nancial institution account (not credit cards). Phone 1800 802 308 to organise a direct debit or to get further information. Mail payments: mail the payment slip together with your cheque or money order using the envelope provided. Please do not use pins or staples. Do not send cash. See below for cheque information. Post offi ce: payments can be made at any post offi ce by cash, cheque or EFTPOS (where available and subject to daily limits). A $3,000 limit applies to cash payments. Your payment slip must be presented with your payment.
Cheques/money orders should be for amounts in Australian dollars and payable to ‘Deputy Commissioner of Taxation’. Cheques should be crossed ‘Not Negotiable’. Payments cannot be made in person at any ATO site or shopfront.
NAT 14168-06.2011 [JS 20316]
GST accounting method
G21 $
Reason code for variation G24
Write this amount at 1A in the Summary section over the page (leave 1B blank) OR if varying this amount, complete G22, G23, G24
Write the G23 amount at 1A in the Summary section over the page and then complete the other sections (leave 1B blank)
Estimated net GST for the year G22 $ , , .00
Varied amount payable for the quarter G23 $ , , .00
PAYG tax withheld
Total salary, wages and other payments W1 $ , , .00
Write the W5 amount at 4 in the Summary section over the page and then complete the other sections
Amount withheld from payments shown at W1 W2 $ , , .00
Amount withheld where no ABN is quoted W4 $ , , .00
Other amounts withheld (excluding any amount
shown at W2 or W4) W3 $ , , .00
Total amounts withheld (W2 + W4 + W3) W5 $ , , .00
Offi ce use only
OR
Option 1: Calculate GST and report quarterly
Report GST on sales at 1A and GST on purchases at 1B in the Summary section over the page and then complete the other sections
Total sales (G1 requires 1A completed) G1 $ , , .00
Export sales G2 $ , , .00
Capital purchases G10 $ , , .00
Non-capital purchases G11 $ , , .00
Does the amount shown at G1 include GST? Yes No
Complete one of the three options below (place in ONE option box only)X
Option 2: Calculate GST quarterly and report annually
Total sales (G1 requires 1A completed) G1 $ , , .00
Report GST on sales at 1A and GST on purchases at 1B in the Summary section over the page and then complete the other sections
Does the amount shown at G1 include GST? Yes No
When completing this form: print clearly using a black pen round down to whole dollars (do not show cents) if reporting a zero amount, print ‘0’ (do not use NIL) leave boxes blank if not applicable (do not use N/A, NIL) do not report negative fi gures or use symbols such as +, −, /, $.
141680611
n14168-06-2011.indd 1 7/07/11 11:21 AM
July to September 2008 12 123 123 123 01 123 456 789 28 October 2008
28 October 2008 Cash
yOur busIness ACTIvITy sTATemenT
SAMPLE: Business activity statement – back
PAYG income tax instalment
9 $
OR
T7 $
Reason code for variation T4
Write the T7 amount at 5A in the Summary section OR if varying this amount, complete T8, T9, T4
Write the T9 amount at 5A in the Summary section
Estimated tax for the year T8 $ , , .00
Varied amount payable for the quarter T9 $ , , .00
Option 2: Calculate PAYG instalment using income times rate
OR
PAYG instalment income T1 $ , , .00
T1 x T2 (or x T3) T11 $ , , .00
F1 $
Reason code for variation F4
Write the F1 amount at 6A in the Summary section OR if varying this amount, complete F2, F3, F4
Write the F3 amount at 6A in the Summary section
Estimated FBT for the year F2 $ , , .00
Varied amount payable for the quarter F3 $ , , .00
Estimate the time taken to complete this form. Include the time taken to collate any information.
HRS MINSReturn this completed form toDeclaration: I declare that the in for ma tion given on this form is true and correct, and that I am authorised to make this declaration. The tax invoice re quire ments have been met.
Signature Date / /
Activity statement instructions are available from www.ato.gov.au or can be ordered by phoning 13 28 66. The ATO is authorised by the tax laws to collect this information to administer those laws and may pass information to other government agencies. More information about privacy and access to your tax information is available from www.ato.gov.au
, , .00
Is 8A more than 8B? then write the result of 8A minus 8B at 9. This amount is payable to the ATO.
then write the result of 8B minus 8A at 9. This amount is refundable to you (or offset against any other tax debt you have).
Yes,
No,
Wine equalisation tax refundable 1D $ , , .00
Luxury car tax refundable 1F $ , , .00
Credit from PAYG income tax instalment variation 5B $ , , .00
Credit from FBT instalment variation 6B $ , , .00
1B + 1D +1F + 5B + 6B + 7D 8B $ , , .00
Fuel tax credit (Do not claim in litres) 7D $ , , .00
If you are using GST Option 3 leave 1B, 1C, 1D, 1E, 1F blank
Amounts you owe the ATO
Summary
Wine equalisation tax 1C $ , , .00
Luxury car tax 1E $ , , .00
PAYG tax withheld 4 $ , , .00
PAYG income tax instalment 5A $ , , .00
6A $ , , .00FBT instalment
, , .00Fuel tax credit over claim (Do not claim in litres) 7C $
1A +1C + 1E + 4 + 5A + 6A + 7C , , .008A $
Complete one of the two options below (place in ONE option box only)X
Payment or refund?
If we do not have your current fi nancial institution account details your refund may be delayed.
n14168-06-2011.indd 2 7/07/11 11:21 AM
PAYMENT ADVICE – 60 0000 0000 00
Steve Smith Pty Ltd
01 123 456 789
EFT code 99889 989 989 9889
As a business registered for fuel tax credits you will receive a personalised bAs showing the labels that relate to your tax obligations (such as pay as you go (pAyG) withholding, luxury car tax, wine equalisation tax and fuel tax credits).
This is the section where you summarise your reporting obligations and calculate whether you are due to receive a refund or you need to pay.
A close up of this section is shown on the following page.
This is where you sign and date your bAs.
This is the payment advice that you use when making a payment.
you also need to include in the amount at label 7D any adjustments or mistakes that increase your entitlement to fuel tax credits – see ‘Adjustments and mistakes’ on page 9.
You can claim fuel tax credits at the time you acquire, manufacture or import the fuel into Australia.
If you account for GST on a cash basis, claim your fuel tax credits in the same bAs period that you pay for your fuel. If you account for GST on a non-cash basis, claim your fuel tax credits in the bAs period that you receive the invoice for your fuel.
If you have nothing to report at label 7D, write ‘0’ – do not leave it blank.
SAMPLE: Fuel tax credit labels on your business activity statement
PAYG income tax instalment
9 $
OR
T7 $
Write the T7 amount at 5A in the Summary section OR if varying this amount, complete T8, T9, T4
Estimated tax for the year T8 $ , , .00
Varied amount payable for the quarter T9 $ , , .00
Option 2: Calculate PAYG instalment using income times rate
OR
PAYG instalment income T1 $ , , .00
T1 x T2 (or x T3) T11 $ , , .00
F1 $
Reason code for variation F4
Write the F1 amount at 6A in the Summary section OR if varying this amount, complete F2, F3, F4
Write the F3 amount at 6A in the Summary section
Estimated FBT for the year F2 $ , , .00
Varied amount payable for the quarter F3 $ , , .00
Estimate the time taken to complete this form. Include the time taken to collate any information.
HRS MINSReturn this completed form toDeclaration: I declare that the in for ma tion given on this form is true and correct, and that I am authorised to make this declaration. The tax invoice re quire ments have been met.
Signature Date / /
Activity statement instructions are available from www.ato.gov.au or can be ordered by phoning 13 28 66. The ATO is authorised by the tax laws to collect this information to administer those laws and may pass information to other government agencies. More information about privacy and access to your tax information is available from www.ato.gov.au
, , .00
Is 8A more than 8B? then write the result of 8A minus 8B at 9. This amount is payable to the ATO.
then write the result of 8B minus 8A at 9. This amount is refundable to you (or offset against any other tax debt you have).
Yes,
No,
Wine equalisation tax refundable 1D $ , , .00
Luxury car tax refundable 1F $ , , .00
Credit from PAYG income tax instalment variation 5B $ , , .00
Credit from FBT instalment variation 6B $ , , .00
1B + 1D +1F + 5B + 6B + 7D 8B $ , , .00
Fuel tax credit (Do not claim in litres) 7D $ , , .00
If you are using GST Option 3 leave 1B, 1C, 1D, 1E, 1F blank
Amounts you owe the ATO
Summary
Wine equalisation tax 1C $ , , .00
Luxury car tax 1E $ , , .00
PAYG tax withheld 4 $ , , .00
PAYG income tax instalment 5A $ , , .00
6A $ , , .00FBT instalment
, , .00Fuel tax credit over claim (Do not claim in litres) 7C $
1A +1C + 1E + 4 + 5A + 6A + 7C , , .008A $
Complete one of the two options below (place in ONE option box only)X
Payment or refund?
If we do not have your current fi nancial institution account details your refund may be delayed.
n14168-06-2011.indd 2 7/07/11 11:21 AM
At label 7C you need to write any adjustments that decrease your fuel tax credit entitlements.
For more information about label 7C, see ‘making adjustments’ on page 11.
At label 7D you need to write the amount you are claiming in fuel tax credits as well as any adjustments that increase your fuel tax credit entitlements.
For more information about label 7D, see below.
LABEL 7D – YOUR FUEL TAX CREDITS At label 7D, you need to include all the fuel tax credits you are entitled to for the tax period. Generally, the amount of fuel tax credits you can claim depends on the fuel type and your business activities.
You must claim any outstanding fuel tax credits within four years of the end of the tax period to which they apply. you can do this using your current bAs rather than revising an earlier bAs that relates to the date of the tax invoice.
If you have omitted to claim fuel from a previous bAs period, and you are including it in your current bAs, you will need to check the fuel tax credit rate that applied to that fuel. Generally, you need to use the rate that applied when you acquired the fuel. However, for heavy vehicles travelling on a public road, you need to use the rate in effect at the beginning of the tax period covered by your bAs.
You can use any appropriate, reliable measure as the basis for working out your eligible quantity of fuel, such as: n odometer readings of kilometres actually travelled n route distances, if a vehicle travels on fixed routes n kilowatt hours of electricity generated n hours of operation for the vehicle or equipment n average hourly fuel consumption of the vehicle or equipment.
You can also use statistical sampling as part of any method that you use.
Fuel tax credits for liquefied natural gas (lnG) or CnG are calculated in cents per kilogram.
For more information about the various calculation methods, refer to Fuel tax credits – keeping records and calculating eligible quantities (nAT 15230).
Step 2: Check which fuel tax credit rate applies for the taxable fuel used in each of your activities. The amount of fuel tax credits you can claim depends on what fuel you use and how you use it in your business.
When calculating your credit, make sure you use the correct and most up-to-date rates for your business activities.
Use the rate when the fuel was acquired You need to use the rate that applied when you acquired the fuel. This may not necessarily be the rate in effect when you use the fuel or claim your fuel tax credits.
However, for heavy vehicles travelling on a public road, you need to use the rate in effect at the beginning of the tax period covered by your bAs.
To check you are using the correct fuel tax credit rate for the period you are claiming for: n refer to Fuel tax credit rates and eligible fuels (nAT 71563) n phone us on 13 28 66 between 8.00am and 6.00pm,
Monday to Friday.
HOW TO WORK OUT YOUR FUEL TAX CREDITS before you can claim your fuel tax credits, you need to know what records you must keep and how to work out what you are entitled to.
records you can use to work out your claims include: n tax invoices showing the fuel you acquired and the date
you acquired it n records showing how you used the fuel and any that was
lost, stolen or otherwise disposed of n records showing how you have worked out your fuel tax
credits – you may want to use the Fuel tax credits calculation worksheet (nAT 15634).
For more information about the records you must keep, refer to Fuel tax credits – keeping records and calculating eligible quantities (nAT 15230).
If you prefer to work out your fuel tax credits electronically, use our fuel tax credits calculator available on our website at www.ato.gov.au/fuelschemes
Fuel tax credit rates vary according to which fuel you use, when you acquired it and the activity in which you used it.
You will need to do a separate calculation for each fuel type and activity where a different fuel tax credit rate applies.
There are three steps to working out your fuel tax credits:
Step 1: Work out the eligible quantity (litres or kilograms) of fuel you have acquired for use in each business activity. To work out the quantity of fuel you can claim fuel tax credits for, you can use any apportionment method or measure that is considered fair and reasonable for your circumstances.
Commonly used methods for apportionment include: n constructive method where you add up the eligible
quantities of each fuel type and activity n deductive method where you subtract any ineligible fuel,
such as fuel you used in small vehicles on a public road, from your total fuel
n percentage use method where you determine a reliable percentage of eligible fuel usage for a sample period and apply this over a number of tax periods
n estimated use method where you make a fair and reasonable estimate of the quantity of fuel you acquire for use in a tax period for – eligible and ineligible activities – multiple activities that have different fuel tax credit rates.
Step 3: Work out the amount of your fuel tax credits in dollars. To work out your fuel tax credits, multiply the eligible quantity of fuel by the relevant fuel tax credit rate (step 1 x step 2). There are different rates for different activities and different fuels, so remember to separate your calculations for each type of fuel and each activity that has a different fuel tax credit rate. If you have used the fuel tax credit rate of cents per litre or kilogram, you must divide the result by 100 to convert it into dollars.
When you have worked out the dollar amount for each activity, add all these figures together to arrive at a total for the tax period, and claim this amount by writing it at label 7D (Fuel tax credit) on your bAs.
The fuel tax credit rates used in the following examples are valid for the situation described and the reporting period. rates may vary – particularly the rate for fuel used in heavy vehicles travelling on a public road, which is subject to variations in the road user charge.
EXAMPLE 1: Constructive method to calculate fuel tax credits
daniel operates a mobile crane service in the building and construction industry. He uses diesel-powered cranes on sites and a diesel truck of 10 tonne Gvm that travels on public roads. He has a diesel four-wheel drive (4Wd) utility that he uses to travel to sites to do maintenance. daniel lodges his bAs quarterly.
daniel keeps a logbook in which he records the fuel he uses in his equipment and job cards on which he records current and future jobs. From the logbook and job cards, daniel can estimate the amount of fuel he will use in his cranes, 10 tonne truck and ute.
On 20 July 2012, daniel acquired 11,500 litres of diesel and uses the constructive method to calculate his fuel tax credit entitlement. He has used some of the fuel but he uses his job cards to estimate how much fuel he will use in his cranes and other equipment during the next quarter.
daniel decides to use the Fuel tax credits calculation worksheet (nAT 15634) to calculate and record his claim. daniel lodges his bAs quarterly and is preparing his september 2012 quarterly bAs.
Step 1 From his records, daniel works out the quantity of diesel fuel he acquired and intends to use in each of his activities. He writes it at (A) in the worksheet as shown below.
Step 2 daniel checks what fuel tax credit rate applies to each of his activities and writes it at (b).
Step 3 daniel multiplies the eligible litres he calculated at (A) by the relevant fuel tax credit rate (b) and divides it by 100 to convert the amount to dollars.
daniel then adds up the total fuel tax credits for each fuel type and activity to arrive at the total claim amount for the tax period. The amount he would write at label 7D on his July bAs is $2,982 (whole dollars).
Eligible fuel type
(A)
Business use of the fuel Date fuel acquired
Fuel tax credit rate when you acquired the fuel (cents per litre/kilogram)
(B)
(C) = (A × B ÷ 100)
20/07/2012 31.933 # 2 6 3 4 4 7.,$
Diesel 2,750 10 tonne truck (Eligible – in a vehicle greater than 4.5 tonne GVM travelling on a public road)
20/07/2012 12.643* 3 4 7 6 8.,$
Diesel 500 4WD utility (Not eligible – business use in a light vehicle with a GVM of 4.5 tonne or less travelling on a public road)
20/07/2012 0 0 0 0.,$
Copy the total amount you have calculated at (C) to Fuel tax credit label 7D on your bAs. Total 2 9 8 2 .,$ 00
# This rate includes the carbon charge for diesel, which is subject to change.
* This rate accounts for the road user charge, which is subject to change.
For the latest fuel tax credit rates, refer to Fuel tax credit rates and eligible fuels (nAT 71563).
AdJusTmenTs And mIsTAKes MAKING ADJUSTMENTS An adjustment is necessary when you have already claimed fuel tax credits based on your intention to use that fuel in a certain way but you actually used it differently, resulting in a change to your fuel tax credit entitlement.
you have to make an adjustment even though your entitlement was correct at the time of lodgment. This is because when you used the fuel for a different purpose, your entitlement for that tax period changed.
Adjustments that increase your entitlements should be reported at label 7D – see ‘example 2’ on page 10. Adjustments that decrease your entitlements should be reported at label 7C – see ‘example 3’ on page 11.
When calculating the dollar amount of your adjustment, you need to apply the fuel tax credit rate that applied at the time you made your original claim.
ADJUSTMENTS AT 7D – INCREASING YOUR ENTITLEMENT you include adjustments to fuel tax credits that increase your entitlement at label 7D on your bAs. you do this when you become aware of changed use of the fuel.
An increase in your fuel tax credit entitlement may occur when you have claimed fuel tax credits but you did not use the fuel as you intended and your actual use has a higher fuel tax credit rate.
These arrangements only apply to fuel tax credit adjustments and mistakes. If you forget to claim fuel tax credits that you are entitled to, this is not considered a mistake.
Sometimes you may need to change an amount of fuel tax credits you have claimed by making an adjustment or correcting a mistake.
you need to make an adjustment if you use the fuel for a different purpose than you intended at the time you acquired, imported or manufactured it, resulting in a change to your entitlement. That is, your entitlement was correct at the time you acquired the fuel and made a claim but your actual use of the fuel later changed.
A mistake generally means you have claimed fuel tax credits when you were not entitled to do so, or the amount you claimed was not correct at the time you lodged it because you made an error. For example, you may have done one of the following: n transcribed the wrong final figure into the fuel tax credit
label at 7D n worked out your entitlement using the wrong fuel tax credit rate n claimed all of the fuel you acquired, instead of just the portion
of fuel that is eligible.
If you forget to claim fuel tax credits that you are entitled to, this is not considered a mistake. you must claim any outstanding fuel tax credits within four years of the end of the tax period to which they apply. you can do this using your current bAs rather than revising an earlier bAs that relates to the date of the tax invoice.
For more information about adjustments and mistakes, refer to Fuel tax credits – making adjustments and correcting mistakes (nAT 15681).
AdJusTmenTs And mIsTAKes
EXAMPLE 2: Increasing your entitlement
Following on from example 1, daniel originally intended to use 2,750 litres of diesel in his 10 tonne truck travelling on public roads and he claimed this amount on his original bAs. However, daniel’s records show that he used an additional 750 litres in his diesel-powered cranes on sites instead.
As the fuel tax credit rate for the diesel-powered cranes is higher, daniel can increase his entitlement to fuel tax credits. daniel will make this adjustment on his bAs for the tax period in which he actually uses the fuel. He works out his adjustment using the fuel tax credit rate which applied at the start of the tax period for the original bAs.
Daniel’s claim calculation for his original BAS based on intended use
Eligible fuel type
(A)
(B)
(C) = (A × B ÷ 100)
20/07/2012 31.933 2 6 3 4 4 7.,$
Diesel 2,750 10 tonne truck (Eligible) 20/07/2012 12.643 3 4 7 6 8.,$
Total 2 9 8 2 1 5.,$ (C) = Intended use
Daniel’s revised claim calculation for his next BAS based on actual use
Eligible fuel type
(A)
(B)
(D) = (A × B ÷ 100)
20/07/2012 31.933 2 8 7 3 9 7.,$
Total 3 1 2 6 8 3.,$ (d) = Actual use
daniel calculates the difference between the total of his actual use (d) and his intended use (C) as he is entitled to additional fuel tax credits based on his actual use of the fuel.
(d) – (C) = additional entitlement
$3,126.83 – $2,982.15 = $144.68
daniel is entitled to an additional $144 (whole dollars) of fuel tax credits. He includes this amount as part of his total at label 7D (Fuel tax credit) on the next bAs he lodges.
ADJUSTMENTS AT 7C – DECREASING YOUR ENTITLEMENT you include any adjustments to fuel tax credits that will decrease your entitlement at label 7C. A decrease in fuel tax credit entitlements happens when circumstances change from your intended use of the fuel, for example: n you have claimed fuel tax credits for fuel that has
subsequently been lost, stolen or otherwise disposed of n you do not use the fuel as you originally intended and the
actual use has a lower rate.
If you have nothing to report at label 7C, write ‘0’ – do not leave it blank.
EXAMPLE 3: Decreasing your entitlement
Following on from example 1, daniel originally intended to use 8,250 litres of diesel in his cranes for building and construction on sites and claimed this amount on his original bAs. However, he used 1,250 litres of that fuel to travel on public roads in his diesel 4Wd utility instead.
As the diesel used in his 4Wd is not eligible, daniel must decrease his entitlement to fuel tax credits. daniel will make this adjustment on the bAs for the tax period in which he uses the fuel. He uses the fuel tax credit rate that applied at the start of the tax period for the original bAs.
daniel’s adjustment, to be included on the next bAs he lodges, is as follows:
Daniel’s claim calculation for his original BAS based on intended use
Eligible fuel type
(A)
(B)
(C) = (A × B ÷ 100)
20/07/2012 31.933 2 6 3 4 4 7.,$
Total 2 9 8 2 1 5.,$ (C) = Intended use
Rules for correcting mistakes If you want to correct mistakes made on your previous bAs on your current bAs, some rules apply. These relate to when the mistake occurred (time limit) and the dollar value of the mistake.
value limits apply regardless of whether your entitlement is being increased or decreased. The time limits only apply if your entitlement is being decreased.
Time limits From the time the mistake occurred (not when you discovered it), you have a limit on the number of subsequent bAs on which you can correct the mistake. If you do not correct the mistake within the time limit, then you will only be able to correct the mistake on the bAs on which the mistake occurred.
The time limits vary depending on the turnover of your business for GST purposes.
EXAMPLE 3: Decreasing your entitlement (continued)
Daniel’s revised claim calculation for his next BAS based on actual use
Eligible fuel type
(A)
(B)
(D) = (A × B ÷ 100)
20/07/2012 31.933 2 2 3 5 3 1.,$
Diesel 2,750 10 tonne truck (Eligible) 20/07/2012 12.643 3 4 7 6 8.,$ Diesel 1,250 4WD utility (Not eligible) 20/07/2012 0 0 0 0.,$
Total 2 5 8 2 9 9.,$ (d) = Actual use
daniel calculates the difference between his intended use (C) and the total of his actual use (d) as he is entitled to less fuel tax credits based on his actual use of the fuel.
(C) – (d) = over claim amount
$2,982.15 – $2,582.99 = $399.16
To decrease his entitlement, daniel needs to include $399 (whole dollars) at label 7C (Fuel tax credit over claim) on the next bAs he lodges, in addition to any other fuel tax credit over claim amounts for the tax period.
CORRECTING MISTAKES A mistake occurs when your bAs was not correct when you lodged it. For example, if you were entitled to $4,500 but you wrote $5,400 on your bAs, then your bAs was not correct when you lodged it. If you realise you have made a mistake on a bAs, you must correct it.
Correcting a mistake made while filling out your BAS If you make a mistake while you are filling out your bAs, you can correct it by crossing it out in black pen. Write the new information as close as possible to the boxes for the label. do not use liquid or tape whiteout – these cause problems with scanning which will delay the processing of your bAs.
Correcting mistakes made on an earlier BAS If you meet the rules for correcting mistakes (see below), you can correct any mistake by doing either of the following: n increasing your fuel tax credit entitlement in your total at
label 7D (Fuel tax credit) on your current bAs n decreasing your fuel tax credit entitlement in your total at
label 7C (Fuel tax credit over claim) on your current bAs.
Correcting mistakes by revising an earlier BAS If you become aware of mistakes that exceed the time or value limits, you can only correct these mistakes by revising the original bAs on which the mistake occurred.
If you revise an earlier bAs because you have over claimed your fuel tax credits, you will be liable to pay the general interest charge.
To obtain a revised bAs form, phone us on 13 28 66 between 8.00am and 6.00pm, monday to Friday. revised bAs forms are also available from the online business Portal, if you are a registered user.
For more information about adjustments and correcting mistakes, refer to Fuel tax credits – making adjustments and correcting mistakes (nAT 15681).
TABLE 1: Time limits for correcting mistakes
Annual turnover Time limit
less than $20m Up to 18 months, that is: n 18 × monthly bAs n 6 × quarterly bAs n 1 × annual GST return
$20m or more up to three months (3 × monthly bAs)
Value limits The value limit is the maximum dollar amount of corrections you can make on a bAs. you need to work out the net dollar amount of all mistakes from previous bAs that you want to correct on your current bAs.
The value limit varies depending on the turnover of your business for GST purposes. The limits apply regardless of whether your entitlement is being increased or decreased as a result of correcting the mistake.
TABLE 2: Value limits for correcting mistakes
Annual turnover Value limit
$20m to less than $100m less than $10,000
$100m to less than $500m less than $25,000
$500m to less than $1b less than $50,000
$1b or more less than $300,000
TABLE 3: Summary of procedures for correcting mistakes
Type of mistake Which limits are applicable? How to correct the mistake
Time limit Value limit Limits were met Limits not met
mistakes that increase your fuel tax credit entitlement Not applicable Yes
Correct the mistake on your current bAs
revise the original bAs on which the mistake occurredmistakes that decrease your
fuel tax credit entitlement Yes Yes
HOW TO PAY
BPAY®
you can use your financial institution’s bpAy facility to pay by phone or over the internet. Use biller code 75556. The bPAY reference number is the electronic funds transfer (eFT) code on the front of your payment slip.
Direct credit you can transfer funds directly to us using internet banking facilities. Use: n bsb number 093 003 n account number 316 385 n EFT code.
If you need more information: n phone 1800 815 886 between 8.00am and 6.00pm,
Monday to Friday n email [email protected]
Direct debit You will need to complete a direct debit request to have your payment electronically deducted from your nominated bank account. A direct debit request can be organised by phoning us on 13 11 42.
If you phone, you can give verbal authority for your account. If you use a tax agent or other authorised representative, they will need to request a Direct debit request form to complete and return to us.
For more information about direct debit: n phone 13 11 42 between 8.00am and 6.00pm,
monday to Friday n email [email protected]
® registered to bPAY pty ltd Abn 69 079 137 518
The due date for lodging and paying is pre-printed at the top right-hand corner of your bAs. you can lodge and pay electronically, by mail or in person, but you need to do it on time to avoid interest and penalties. Even if you have no amounts to report for the period, or you are having difficulty paying, it is still important to make sure we receive your bAs by the due date.
YOUR MAILING ADDRESS To ensure you receive the correct mail for each of your tax obligations in a timely manner, you should ensure the address details we have for you are correct.
To update your address for receiving your bAs, phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday, or log on to the online business portal.
To register for the business portal or for more information, visit our website at www.ato.gov.au/onlineservices
HOW TO LODGE
Electronically You can lodge electronically using either: n the business portal n your registered tax agent or bAs service provider.
For more information about electronic lodgment, visit our website at www.ato.gov.au/onlineservices
By mail mail your original, completed bAs with your cheque using the pre-addressed envelope provided.
If you misplace the envelope, you can send your bAs to: n WA, sA, nT, TAs or vIC
residents Australian Taxation Office Locked Bag 1936 ALBURY NSW 1936
n nsW, ACT or Qld residents Australian Taxation Office Locked Bag 1793 PENRITH NSW 1793
remember to send us the original copy of your bAs, not a copy or a version generated from a commercial software package. If you use a commercial package, make sure you copy the information onto the original copy of your bAs.
lOdGInG And pAyInG
Australia Post You can pay in person at Australia Post outlets using your original payment advice slip. you can pay with cash (a $3,000 limit applies), money order or cheque. eFTpOs is available at most Australia Post outlets for savings and cheque accounts.
To order additional or replacement payment slips, phone us on 13 72 26.
If you make a payment at Australia post, or you pay electronically, you must still send your completed bAs to us by mail or electronically unless we advise you otherwise on the form.
you cannot make payments in person at any of our sites or shopfronts.
WHAT IF YOU CANNOT LODGE AND PAY ON TIME? You must phone us on 13 28 66 to check if alternative arrangements can be made.
you must still lodge your bAs by the due date, even if you cannot pay on time. The general interest charge will apply to any amount not paid by the due date. A penalty may also apply if you fail to lodge on time.
EXPECTING A REFUND? Generally, we can only pay refunds directly into your nominated financial institution account, so it is essential that we have your correct account and branch (bsb) numbers. your nominated account must be at a branch of the institution in Australia.
If you need to change your financial institution account details, phone us on 13 28 66. You will need to provide proof of identity. This may be your tax file number (TFn), Australian business number (Abn) or name, and specific identifiers (such as information from a previously generated tax notice).
We may not issue a refund if you have not lodged a previous bAs or if you have provided incorrect bank details.
your fuel tax credits at label 7D will be offset against any fuel tax credit over claim at label 7C for the current period as well as any other outstanding tax obligations or some Australian Government debts you may have.
Credit card you can make a credit card payment online or by phone using the Government EasyPay service. This service only accepts payments between $10 and $50,000. you will need a current visa, masterCard or American express card and your eFT code.
Pay online using the secure online service at www.optussmartpay.com/governmenteasypay-ato or pay by phone on 1300 898 089.
A card payment fee applies to transactions made using this service. This fee is the non-GST component of the amount we incur for these transactions. You will be informed of the fee amount and transaction totals before you are asked to confirm payment. The Government EasyPay service will provide a receipt that displays both payment and card payment fee – labelled ATO on your credit card statement.
Mail Cheques and money orders should be in Australian dollars and payable to ‘deputy Commissioner of Taxation’. Cheques should be crossed ‘Not negotiable’ and must not be post-dated.
You should also include your payment slip or a note that states your: n full name n address and telephone number n account identifier – for example, tax file number (TFn),
Australian business number (Abn) or client identification number n payment type – for example, business activity statement (bAs)
payment, income tax or Help.
Mail your payment and payment slip or note to: n WA, sA, nT, TAs or vIC
residents Australian Taxation Office Locked Bag 1936 ALBURY NSW 1936
n nsW, ACT or Qld residents Australian Taxation Office Locked Bag 1793 PENRITH NSW 1793
CHeCKlIsT KEEPING COPIES OF YOUR BAS you should keep a copy of your bAs and the records you used to prepare it for five years after they are prepared, obtained or the transactions completed (whichever is later), in writing and in english.
Information stored on magnetic tape or computer disk is not in a written form. These records must be in a form that is readily accessible and easily converted into English.
If you do not have access to a photocopier, you can download a sample copy of the bAs from our website at www.ato.gov.au/activitystatements and record the information from your original bAs on this copy before filing it for your records.
SELF ASSESSMENT self assessment for indirect taxes (including fuel tax credits) started on 1 July 2012. When you lodge a bAs for tax periods that start on or after that date, you will still include the dollar amounts of fuel tax credit and fuel tax credit over claim for the tax period. You will also include your GST payable, GST credits and other amounts as required.
The Commissioner is taken to have made an assessment of your net credit or liability (known as your net amount or net fuel amount) based on the amounts you include on your bAs on the day you lodge. your bAs is treated as being a notice of assessment signed by the Commissioner and issued on the day it is given to us.
For more information about self assessment, refer to Guide to self-assessment for indirect taxes (nAT 74234).
Have you: checked your calculations? remember to use the correct fuel tax credit rate.
left off the cents when totalling your final figures?
copied amounts to your bAs correctly?
You may need to: n complete any other sections of the bAs that apply
to you and copy the totals to the summary section n work out if you must make a payment or are entitled
to a refund n complete the payment or refund details n contact us to update your address – see ‘Your mailing
address’ on page 14.
You must: n sign and date your bAs n lodge the original (not a copy) of your bAs by the due date n pay any amounts you owe by the due date.
If you do not speak english well and need help from the ATO, phone the Translating and Interpreting Service on 13 14 50.
If you are deaf, or have a hearing or speech impairment, phone the ATO through the national relay service (nrs) on the numbers listed below: n TTY users, phone 13 36 77 and ask for the ATO number
you need n speak and listen (speech-to-speech relay) users, phone
1300 555 727 and ask for the ATO number you need n internet relay users connect to the nrs on
www.relayservice.com.au and ask for the ATO number you need.
mOre InFOrmATIOn For more information about fuel tax credits, refer to: n Fuel tax credits for business (nAT 14584) n Fuel tax credits calculation worksheet (nAT 15634) n Fuel tax credits – keeping records and calculating eligible
quantities (nAT 15230) n Fuel tax credits and GST instalments (nAT 15330) n Fuel tax credits – making adjustments and correcting mistakes
(nAT 15681).
You can also obtain copies of some of these publications by noting the full title and: n visiting our website at www.ato.gov.au/onlineordering n phoning our operator-assisted publications Ordering service
(which operates between 8.00am and 6.00pm, monday to Friday) on 1300 720 092
n phoning our automated publication Ordering service any time on – 13 72 26 if you have an Abn – 13 28 65 if you do not have an Abn.
The fuel tax credit eligibility tool available on our website at www.ato.gov.au/fuelschemes can help you to work out your eligibility for fuel tax credits and the rate at which you can claim.
The fuel tax credit calculator available on our website at www.ato.gov.au/fuelschemes can help you work out your fuel tax credit entitlements as well as adjustments.
You can also: n visit our website at www.ato.gov.au/fuelschemes n phone us on 13 28 66 between 8.00am and 6.00pm,
monday to Friday n write to us at
Australian Taxation Office PO Box 3001 PENRITH NSW 2740
INTRODUCTION
GST instalment payers
How to work out your fuel tax credits
Adjustments and mistakes
Correcting mistakes
Expecting a refund?
Self assessment
MORE INFORMATION

fuel tax credits – how to complete your business activity

Documents