Additional Methods for Calculating Eligible Litres for Fuel Tax Credits

Additional Methods for Calculating Eligible Litres

Additional Methods for Calculating Eligible Litres for Fuel Tax Credits

Are you?	- Carrying on a business that uses fuel in its income earning activities?
At a glance:	- The Tax Office has recently announced that there are now two new methods which taxpayers can use to calculate their eligible litres when claiming fuel tax credits.
You should:	- Ensure you are aware of the fuel tax credit system. - Contact us if you require any clarification or advice.

1.	Fuel tax credits provide a credit for any fuel tax (excise or customs duty) included in the price of fuel used in business activities such as operating machinery, plant and equipment or heavy vehicles.
2.	There are a number of ways in which taxpayers can calculate their eligible litres in order to claim fuel tax credits. The Tax Office has recently announced two new methods: # The alternative percentage use method; and # The average fuel consumption rate.
3.	The alternative percentage method can be used where eligible fuel use remains consistent over time.
4.	The average fuel consumption method can be used where fuel use is recorded. Taxpayers then work out their eligible litres by multiplying the hours of an activity by the average hourly consumption.
5.	These new methods of calculating fuel tax credits do not replace the existing methods; they are simply additional methods which taxpayers may use to calculate eligible litres.