Why do Transport Companies need a Fuel Tax Credit review? 

  • The original finding dates back to 2012 in the case of Linfox Australia Pty Ltd vs Commissioner of Taxation. The case identified that fuel used in heavy vehicles that are not utilised solely for the purpose of driving down a public road should be eligible for the full fuel rebate. 
  • There has still been a significant amount of change to the legislation post this case, as recently as early last year. 
  • Any change financially positive change in your claiming process can be backdated over 4 years, this creates a significant opportunity to recoup 4 years’ worth of lost credits back from the ATO. 
  • Having completed over 100 of these reviews, it’s likely your competitors have done a review which could change their quoting structure. 

How does the review help my business? 

The purpose of the review is to: 

  • Identify the appropriate areas where fuel litres require an apportionment between the on-road rate and the off-road/auxiliary rate (off-road refers to all areas of fuel not used to propel the vehicle along the public road).  
  • A combined amount of small percentages makes a big difference. 
  • Educate you on the best practice methods for identifying and documenting all methods used to substantiate any back claim, and work with you on implementing these methods.  
  • Calculate any appropriate back claim. 
  • Provide a formula-driven fuel tax credit claiming spreadsheet going forward. 
  • Provide you with an audit pack for potential future ATO questions. 

How much will it cost me to do a review? 

  • There is no charge for the review but the advice for any back claim is at a percentage of the refund identified and received 
  • This percentage fee is set at 20% for 20 trucks and over, and 25% for under 20 
  • No fee will be charged if there is no back claim is identified. 

Why hasn’t my accountant approached me for these changes  

  • Your accountant may have it all under control but, Fuel Tax Credits are not isn’t like other areas of tax, the vast majority of accounting firms simply don’t have enough clients to allow them to get sufficient exposure and the appropriate level of experience to be able to properly advise on the changes. 
  • It’s why I work Australia wide rather than local. (and unfortunately, why I provide a lot of the service remote by phone and online meetings have to make phone calls)  

What is the likely refund, and do I use enough fuel? 

  • It’s a case by case scenario and really depends on your location, type of work you do and how your assets operate as well. 
  • But the average difference in rates is 26c, so the goal is to identify where we can add 26c per litre to a percentage of your claim, and then backdate over all your claims over the past 4 years. 
  • You also get the financial benefit going forward as well. 

How much work does it require to make it worth my while? 

  • Realistically for all refunds of over $30,000, it’s probably 7-10 hours of work for your team spread across a month. The rest is done by us. 
  • Initially, all we need is the last 4 years of FTC claiming spreadsheets and a 30-minute conversation with your operations manager to understand the operations of the business.  
  • No site visit is required. 

Do I need a GPS tracking system? 

  • No, you don’t need an expensive GPS tracking system if you don’t already have one.