While governments across Australia have implemented a number of support packages and tax incentives focused on minimising the impact of COVID-19 on businesses, there are existing mechanisms organisations should look to as a way of recovering and retaining cash in the business.

Fuel tax credits are one example where businesses can significantly reduce the marginal cost of fuel to your bottom line. Though it remains a mechanism that businesses don’t typically access to its fullest capacity, if at all.

Businesses that acquire fuel as part of their operations – be it, within the construction, mining, manufacturing or even transport industry, for instance – may be eligible for fuel tax credits or excise refunds. For businesses already claiming, you may be eligible to increase your claim by undertaking a complete analysis of your operations. If you’re not claiming, then a significant percentage of your fuel costs could be recovered (up to 42c/L).

What many organisations might not be aware of is that you can retro-access these credits from up to four years ago with the ATO. This could mean significant money is being left on the table, having a large impact on your cash flow.

More often than not, businesses that acquire fuel can access some sort of savings.

There are some complexities to navigate, so the team at Grant Thornton is working with clients to see if they are eligible and then help them to apply. Get in touch.