October 2012 Newsletter

In this edition:

Welcome

Fuel tax credits - changes from 1 July 2012

Will your business survive? Feature article on business succession planning

ATO assistance for small businesses experiencing short-term financial difficulties

Obligations and responsibilities for SMSF trustees

With the 2013 financial year well under way and the lodgement deadline for September 2012 quarter BAS fast approaching, businesses need to be aware of changes to the fuel tax credit scheme.

These changes have been in effect from 1 July 2012 and we provide a summary of the main changes below:



• Fuel used in off-road activities that qualified for the half-credit rate prior of 19.0715 is now entitled to the full credit rate of 31.933 cents per litre from 1 July 2012.
• The introduction of a carbon charge which reduces the rates for some fuel types and for many off road activities.
• An increase in the road user charge for on road heavy vehicle transport. This leads to a decrease in the fuel tax credit entitlement for heavy vehicles travelling on public roads.
• Changes to the fuel tax credit rate for gaseous fuels and for some blended liquid fuels. The taxation of gaseous fuels such as LNG, LPG and CNG will no longer be 'tax neutral' to users of these fuels.

Please note the fuel tax credit rate in effect on the date the fuel was acquired must be used in claiming fuel tax credits. This may not be the rate in effect when you use the fuel or claim your fuel tax credits on your business activity statement (BAS). For heavy vehicles travelling on public roads the rate used is the rate in effect at the beginning of the tax period covered by your BAS.

With an increase in ATO review activity in this area it is important for businesses to review their fuel tax credit claims and eligibility. The ATO has released a number of tools to assist businesses in determining their fuel tax credit entitlement. 

For more information on current fuel tax credit rates, see the ATO website.

Alternatively contact us at Goodwin Chivas & Co if you have any queries.