• Change in fuel tax credits from 1 July 2017

The ATO has announced a change in the fuel tax credits (“FTC”) rate from 1 July 2017.

This FTC rate change is reflective of the change in the Road User Charge (“RUC”), which is reviewed annually at the end of each financial year.

While the total amount of excise included in the price of eligible fuels, such as petrol and diesel, has remained constant at 40.1 cents per litre, the RUC has reduced from 25.9 cents per litreto 25.8 cents per litre.

This has resulted in an increase in the FTC rate for eligible vehicles using eligible fuels for travel on public roads. This “road transport” rate is now 14.3 cents per litre, up from 14.2 cents per litre.

As the amount of excise included in the price of eligible fuels has not changed, the “off-road” rate will remain at 40.1 cents per litre for fuel used for travelling on non-public roads (i.e. private roads), fuel consumed during idling off-road and fuel used to power auxiliary equipment.

It should be further noted that FTC rates are updated again from 1 August and 1 February in line with the consumer price index (“CPI”), with all the information being available from Grant Thornton Australia.