Bowser blues?

The rising cost of fuel is a hot topic right now.

The Government recently temporarily halved the excise and excise equivalent customs duty rates for petrol, diesel and all other petroleum-based products (except aviation fuels) for 6 months from 30 March 2022 until 28 September 2022.

This has caused a reduction in fuel tax credit rates. During this 6 month period, businesses using fuel in heavy vehicles for travelling on public roads won’t be able to claim fuel tax credits for fuel used for this purpose. This is because the road user charge exceeds the excise duty payable, and this reduces the fuel tax credit rate to nil.

What will this mean for you?

Households

An Australian household with at least one vehicle will receive an average benefit of around $300 over a 6-month period.

Heavy Vehicles

Heavy vehicles travelling on public roads have their fuel tax credit reduced by the RUC. The Government is not changing the existing RUC arrangements for heavy vehicles travelling on public roads, but the temporary reduction in fuel excise will provide a net benefit for heavy vehicle operators of 4.3 cents per litre from 30 March, compared to current settings.

Businesses

Fuel tax credits (FTC) provide businesses with a credit for the excise that is included in the price of fuel if the fuel is used in light vehicles travelling off public roads or on private roads, heavy vehicles, or certain non-vehicle settings (machinery, plant and equipment).

Please reach out to the team at Flux Advisors if you would like to discuss this in more detail.