Heavy vehicle fuel tax solution for modest claims

The ATO has released a simpler way to calculate fuel tax credits for diesel used in heavy vehicles.

Truck owners that use a heavy vehicle and who claim less than $10,000 each year can use the new “basic method”.

The method makes it easier to work out on and off public road use. The rate for travel off public roads is higher than on public roads, meaning more fuel tax credits are made if off public road use is calculated correctly.

Examples of travel off public roads includes heavy vehicle use in warehouses, depots or car parks, where a heavy vehicle may be idling, loading or unloading.

This method can be used for diesel acquired on or after 1 October 2020. Any other methods for calculating fuel used for travel on and off public roads cannot be used this method is applied.

The basic method for heavy vehicles when lodging the next business activity statement (BAS) can be found here.

Just started using fuel in your business? Check if you are eligible for fuel tax credits on the ATO website here.

Have you got a question about calculating fuel credits in your business? Get in touch with our Tax & Accounting team who will be able to assist you on 02 9981 2300.