Fuel tax credits are provided to business taxpayers who are registered, or required to be registered, for GST (and to some non-profit bodies) in 2 situations. They are:
- If the business acquires, manufactures or imports fuel to use in carrying on an enterprise (whether the fuel is used as fuel or otherwise), or
- The fuel is acquired, manufactured or imported to make a taxable supply to a private user for domestic hearing, or to package the fuel for the purpose of making a taxable supply of it for use other than in an internal combustion engine.
However, fuel tax credits will not be granted if: another person is already entitled to the credit in respect of the same fuel; or the fuel is for use on-road in light vehicles; or the fuel is for use in vehicles that do not meet certain environmental criteria; or the fuel is for use in aircraft.
The amount of fuel tax credit is reduced to the extent, determined by the Minister, that fuel tax is imposed on the fuel to fund a cleaner fuel grant, or by any road user charge determined by the Transport Minister.
A person cannot include more that $3 million in fuel tax credits in net fuel amounts in a financial year unless the person is a member of the Greenhouse Challenge Plus Programme. However, if a person is denied a credit on the basis of not being a member of the Programme, and subsequently becomes a member, a decreasing fuel tax adjustment will be made of the amount of credit that was originally denied.
Under the Greenhouse Challenge Plus Programme, members are required to report publicly on their greenhouse gas emissions profile.
Source: Parliament of Commonwealth of Australia, April 2006.
For more information please contact:
| Andrew Petersen, Partner
Phone: +61 2 8266 6681
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