- Changes in fuel tax credits from 3rd February 2020
The ATO has announced a change in the fuel tax credits (“FTC”) rate from 3rd February 2020.
This FTC rate change is reflective of the bi-annual indexation of rates which are made in line with the consumer price index (“CPI”).
There has been an increase of 0.5 cents per litre for eligible vehicles that use taxable fuel such as diesel or petrol, and travel on public roads, increasing the “road transport” rate to 16.5 cents per litre.
The “off-road” rate has also increased by 0.5 cents per litre, resulting in an “off-road” rate of 42.3 cents per litre. This rate applies to 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.
Due to the “road transport” rate and the “off-road” rate both increasing by equal amounts, the road user charge (“RUC”) has remained constant at 25.8 cents per litre.
It should be noted that FTC rates will next be updated from 30 June 2020, with all the information being available from Grant Thornton Australia.