Fuel Tax Credit developments

by | May 16, 2016

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.


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