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Thursday, 10 July 2014

Proposed changes to fuel tax credits

Fuel tax credits provide a credit for any fuel tax (excise or customs duty) included in the price of fuel used in business activities, machinery, plant and equipment or heavy vehicles.

From July 1, 2014, if legislation remains unchanged, most fuel tax credit rates will change due to increases in the carbon charge amounts.

However, in the 2014-15 Budget, the Government announced that they proposed to remove the carbon charge.

If legislated, this amendment will be effective from July 1, 2014.

In addition, the Government has proposed to index the excise duty rates for most fuels every six months from August 1, 2014.

The current fuel tax credit rate for heavy vehicles travelling on public roads has remained the same since July 1, 2013 at 12.003 cents per litre.

For more information, click here.