Don’t forget 1st February…………
Why? Fuel tax credit rates increased in line with the latest CPI changes.AGDATA has released the updates for Version 7 and 8 with the new rates in them.
It is now your responsibility to ensure that you have installed those updates and have created the new Fuel Tax Regimes starting 01/02/2016 in order to claim the rebate at the latest rate. The new regime(s) can be created after you have entered your February transactions, but should be created before you lodge a BAS which includes February.
Although we routinely update the Fuel Tax Credit rate in line with the ATO, there are still some of you who only install the Phoenix updates expecting the new rates to be automatically applied. We are unable to create the new regime, this needs to be done by you. It would be great if this could be the case but for various reasons it can’t.
As the off road rates in particular have been increasing, if you are still claiming your fuel tax credit at the rate which applied several years ago, you may be under-claiming. Depending on the volume of fuel you use this could be a significant amount of income you are missing out on.
As an example a client whose off road fuel consumption from November 2014 to January 2016 was about 90000 L and who’s on road fuel was about 25000 l and who hasn’t changed their Fuel Tax regimes since July 2014 has under claimed Fuel Tax credits of almost $1000.For each set of books using the Fuel Tax Credit calculators in Phoenix the regimes must be manually updated each time there is a change. The change will in most instances be because of changes in the rates, but if your fuel use changes significantly that also requires a new regime. E.g. You were previously claiming a rebate only for off road fuel and then purchased a truck over 4.5t GVM. If this truck meets the eligibility criteria to claim the fuel rebate and is used on road as well as off road a new regime may need to be set up starting from the date of the change in use.
Many leave it up to the accountant to work out your claims or manually calculate them. Once the regimes are set up in Phoenix the only other information required for Phoenix to report the amount to put in 7D in the BAS is the quantity purchased. This is recorded when entering an invoice from the fuel supplier, if using Suppliers in Phoenix, or when recording a payment for fuel in the bank account, if Suppliers aren’t used.
Below is a link to the Australia Taxation Office website. If you type Fuel Tax Credit into the Search field you will be given a range of topics to choose from to learn more about eligibility, rates and claiming.
https://www.ato.gov.au/
There are a few helpful tutorial videos available on this topic for Signature Service Plan subscribers
There is also a free tutorial video available on the topic
Contact our helpful support team if you are still unsure of what needs to be done on 1800 500 400
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