Fuel Tax Credit developments

Recent ATO pronouncements by way of Practical Compliance Guidelines (PCGs) will be of interest to businesses that claim Fuel Tax Credits.

In particular the ATO has released PCG 2016/4 and PCG 2016/8 both of which should be considered by Fuel Tax Credit claimants in terms of potential to increase claims and to ensure consistency of current claiming practices against the ATO’s public position.

PCG 2016/4 deals with apportionment and provides a welcome concession from the ATO that 100% entitlement to FTCs will exist for certain vehicles where on-road use is no more than incidental to off-road purpose. Vehicles covered by the concession include tractors, graders etc.

PCG 2016/8 outlines the ATO views on a variety of matters and particularly what are fair and reasonable apportionment methodologies. Apportionment methodologies are a key aspect of the Fuel Tax Credit system. The release of PCG 2016/8 provides a timely reminder for claimants to consider apportionment strategies applied vis a vis the ATO’s view.

This article provides a general summary of the subject covered as at the date it is published. It cannot be relied upon in relation to any specific instance. Webb Martin Consulting Pty Ltd and any person connected with its production disclaim any liability in connection with any use. It is not intended to be, nor should it be relied upon as, a substitute for professional advice.

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