Are You Maximising Your Tax Fuel Credits?

April 24, 2024

If your business relies on vehicles or fuel-operated equipment in Australia, you’re entitled to claim rebates on the fuel tax you’ve paid. While most businesses claim Fuel Tax Credits (FTC), many don’t maximise their rebate potential. Often, they settle for the standard on-road FTC rate, regardless of whether the fuel was used on public roads or off-road.

This approach might seem convenient, requiring minimal record-keeping, but it could mean missing out on significant additional FTC rebates. By not accurately documenting off-road usage, businesses could be leaving thousands of dollars in potential rebates untapped.

Who is eligible to claim for Fuel Tax Credits?

Here's what you need to know about maximising your FTC rebates

Banlaw’s Fuel Management System offers comprehensive solutions to enhance fuel management practices, safeguard assets, generate significant savings, and optimise Fuel Tax Credits. Selecting the right fuel management system is crucial for efficient fuel management, tracking, and monitoring, as well as for collecting accurate data on fuel movements and asset usage, ultimately maximising entitlements to fuel credits or government rebates.

While various fuel management systems are available in the market, Banlaw’s stands out as the only complete, end-to-end solution. It comprises high-quality components and precision instrumentation designed to work seamlessly with the Restrack RMS software. This integration ensures that users receive their full entitlement of fuel credits or government rebates. Notably, Banlaw’s Restrack RMS software has undergone auditing by the Australian Tax Office (ATO) and has been approved, providing users with audit-ready data.

Obtaining audit-ready data automatically is immensely valuable for businesses. Banlaw’s system includes robust hardware and sophisticated software that streamline the entire fuel management process. From fuel nozzles that regulate flow rates and enhance fuel safety to automatic tank gauging capabilities that provide real-time monitoring of fuel stock quantities, Banlaw’s system covers every aspect of fuel management. Additionally, the refueling hardware incorporates RFID technology for automatic identification of vehicles and operators, further enhancing efficiency and accuracy in fuel management practices.

What are Fuel Tax Credits?

Fuel tax credits provide businesses with a credit for the fuel tax paid at the pump to operate heavy vehicles, light vehicles, machinery, and equipment. FTC applies to any business using fuel, except for aircraft, light vehicles on public roads, and personal use of fleet vehicles.

What vehicles can you claim FTC on?

Businesses can claim FTC on heavy vehicles travelling on public roads and off-road, as well as light vehicles and equipment used off-road, such as on private property or construction sites.

What's the difference between on-road and off-road FTC claims?

Many businesses only use the standard on-road FTC rate, even for off-road usage. However, off-road usage qualifies for a higher FTC rate, up to 42.7 cents per liter. This can result in significant additional rebates compared to the standard on-road rate.

How is 'off-road' defined?

Off-road includes any area at least 30 meters from the center line of a public road, such as depots, farms, mining sites, construction sites, and private roads.

How do you calculate FTC?

The amount of FTC depends on when the fuel was purchased, the type of fuel, and how it was used. Fuel tax credit rates vary and are subject to change every six months. Accurately documenting fuel usage and off-road activities is crucial for maximising FTC rebates.

How can technology help maximise FTC rebates?

Telematics technology, like Banlaw’s Fuel Management System, simplifies the FTC claims process by accurately recording fuel usage on-road and off-road. This technology eliminates guesswork, automatically calculates FTC, and helps identify opportunities for retrospective claims.

What is Geofencing?

Banlaw’s smart telematics software allows businesses to create temporary ‘geofences’ around areas where vehicles operate off-road, even if they’re close to public roads. This enables companies to claim the maximum off-road FTC rebate for vehicles and equipment operating in these areas.

Retrospective off-road FTC claims

Businesses can claim retrospective FTC rebates for up to four years if they can demonstrate a consistent pattern of off-road fuel usage. Banlaw’s FTC Solution can help capture and analyse usage data to support retrospective claims.

Simplyfly Your Tax Fuel Credits

By accurately documenting off-road fuel usage and leveraging technology like Banlaw’s Fuel Management System, businesses can maximise their FTC rebates and unlock potential savings. Don’t leave money on the table – start maximising your diesel fuel tax rebate today with Banlaw’s comprehensive solutions, please contact us to speak with a specialist.