Guide for fuel tax credit claimants. Fuel tax credits. Domestic electricity generation and non-profit emergency vehicles or vessels

Transcription

1 Guide for fuel tax credit claimants Fuel tax credits Domestic electricity generation and non-profit emergency vehicles or vessels NAT

2 Our commitment to you We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. If you follow our information in this publication and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we must still apply the law correctly. If that means you owe us money, we must ask you to pay it but we will not charge you a penalty. Also, if you acted reasonably and in good faith we will not charge you interest. If you make an honest mistake in trying to follow our information in this publication and you owe us money as a result, we will not charge you a penalty. However, we will ask you to pay the money, and we may also charge you interest. If correcting the mistake means we owe you money, we will pay it to you. We will also pay you any interest you are entitled to. Australian Taxation Office for the Commonwealth of Australia, 2014 You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). Published by Australian Taxation Office Canberra August 2014 JS If you feel that this publication does not fully cover your circumstances, or you are unsure how it applies to you, you can seek further assistance from us. We regularly revise our publications to take account of any changes to the law, so make sure that you have the latest information. If you are unsure, you can check for more recent information on our website at ato.gov.au or contact us. This publication was current at August 2014.

3 Contents About this guide 4 Getting started 5 Eligibility domestic electricity generation 6 Eligibility non-profit emergency vehicles or vessels 7 Registering 9 Working out your eligible quantities 10 Claiming fuel tax credits 11 Receiving your fuel tax credits 14 More information Inside back cover Fuel tax credits 3

4 About this guide You should read this guide if you are not registered, or required to be registered, for goods and services tax (GST) and are eligible to claim fuel tax credits. It covers eligibility for fuel tax credits for: domestic electricity generation non-profit organisations operating emergency vehicles or vessels. It provides information about how you can: register for fuel tax credits work out your eligible fuel make a claim. Throughout this guide you will find important notes giving you key information. Look for the symbol. You will also find more information boxes (look for the symbol) that will show any supplementary information you may want to refer to. We often refer to QC numbers, which can be used to search for publications on our website. If you are registered for GST and want to claim fuel tax credits, visit our website at ato.gov.au/fuelschemes and refer to Fuel tax credits for business (QC 18875). 4 Fuel tax credits

5 Getting started Fuel tax credits provide you with a credit for the fuel tax (excise or customs duty) included in the price of fuel. Changes from 1 July 2014 From 1 July 2014, your fuel tax credit rates: increased for fuel used to generate domestic electricity increased for fuel used in emergency vessels increased for transport gaseous fuels, other than when used for travelling on public roads. Gaseous fuels are liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG). The Australian Government is proposing to index excise duty rates for most fuels every six months. If this change becomes law, fuel tax credit rates will change. For the latest information, visit our website at ato.gov.au/fuelschemes and refer to Fuel tax credits changes from 1 July 2014 (QC 33571). Fuel tax credit rates The fuel tax credit rates vary depending on what fuel you use and how you use it. The rate for fuel used in heavy emergency vehicles for travelling on public roads is reduced by the road user charge, which is subject to change. However, fuel you use to power auxiliary equipment of a heavy vehicle travelling on public roads is not reduced by the road user charge. For the latest fuel tax credit rates, visit our website at ato.gov.au/fuelschemes and refer to Fuel tax credit rates - domestic electricity and emergency vehicles and vessels (QC 35331). Fuel tax credits 5

6 Eligibility domestic electricity generation You can claim fuel tax credits for taxable fuel, such as diesel or petrol, you acquire for use in generating electricity for domestic purposes. The fuel can be used to generate electricity using a motor or generator, for yourself or others. When we say for domestic purposes, we mean for a home, house or household. This includes a: static home such as a single house, duplex, town house, unit or cabin relocatable home such as a demountable home marine home such as a houseboat mobile home such as a caravan or motor home. Generally, you are only entitled to fuel tax credits for electricity you generate for the home if it is the main or permanent place of residence. You cannot claim fuel tax credits for electricity you generate for recreational purposes, including for use in a: holiday caravan tent yacht. Domestic electricity generation does not include fuel you use to generate electricity for business or commercial purposes this must be claimed on your business activity statement (BAS). When you cannot claim for domestic electricity generation You are not eligible to claim fuel tax credits for some fuels you use in domestic electricity generation: fuel you acquired but did not use because it was lost, stolen or otherwise disposed of some alternative fuels, such as ethanol or biodiesel, that have already received another grant or subsidy fuels where fuel tax credits have already been claimed by a business earlier in the supply chain, for example kerosene packaged in containers of 20 litres or less heating oil supplied for home heating duty paid LPG supplied for residential use, or packaged for supply in containers of 210kg or less. Example 1: Domestic electricity generation only Laurren lives in a remote location and uses a petrolpowered generator to generate electricity for her lighting, heating and other domestic requirements. She is entitled to claim fuel tax credits for the petrol she uses in her generator as the fuel is for use in domestic electricity generation. Laurren will claim her fuel tax credits on her fuel tax credit claim form. Example 2: Domestic and business electricity generated by a sole trader Judith is a sole trader registered for GST. She lives in a remote location on the coast and operates a café and fish and tackle business which is located in a building at the front of the same property as her home. She has two diesel-powered generators she uses to produce electricity for her: home on the property café and fish and tackle business. Judith is entitled to claim fuel tax credits for diesel used in both generators because the fuel is used in domestic electricity generation and to carry on her business. As Judith is registered for GST, she must claim fuel tax credits on her BAS for both the domestic and business electricity she generates. Example 3: Domestic and business electricity generated by related entities David is the director of Smith Pty Ltd and he operates a restaurant business through the company. The company purchases diesel for use in the business for electricity generation and bore pumps and claims its fuel tax credits on its BAS. David uses a diesel-powered generator to generate electricity for lighting, heating and other domestic requirements for his home which is located on a property next to the business. He is entitled to fuel tax credits for the diesel used in the generator at his residence. David is not personally registered for GST and, as he pays for the fuel himself, he will claim his fuel tax credits on his fuel tax credit claim form. For more information about how to claim for fuel used in generating electricity for business or commercial purposes, visit our website at ato.gov.au/fuelschemes and refer to Fuel tax credits for business (QC 18875). 6 Fuel tax credits

7 Eligibility non-profit emergency vehicles or vessels If you operate a non-profit organisation that has chosen not to register for GST because its GST turnover is less than $150,000, you can still claim fuel tax credits on a fuel tax credit claim form if you meet all the following requirements: you only claim for fuel used to operate emergency vehicles or vessels you are a non-profit organisation at the time you acquire, manufacture or import the fuel you acquire, manufacture or import the fuel for use in a vehicle or vessel that provides emergency services and is clearly identifiable as such. If you want to claim fuel tax credits for any use other than in emergency vehicles or vessels, you must be registered for GST and make your claim on your BAS. You are not eligible to claim fuel tax credits for: aviation fuels (such as aviation gasoline and aviation kerosene) fuel you use in light vehicles of 4.5 tonnes gross vehicle mass (GVM) or less, for travelling on public roads fuel you acquired but did not use because it was lost, stolen or otherwise disposed of some alternative fuels, such as ethanol or biodiesel, that have already received another grant or subsidy. Emergency vehicles You are entitled to claim fuel tax credits for taxable fuel (for example, diesel or petrol) you use for: operating a heavy emergency vehicle for travelling on public roads rates for this activity are reduced by the road user charge, which is subject to change powering auxiliary equipment of a heavy emergency vehicle travelling on public roads (such as a water pump attached to the fire truck) rates for this activity are not reduced by the road user charge as it is considered to be unrelated to a vehicle s movement along public roads. A heavy emergency vehicle has a GVM greater than 4.5 tonnes diesel vehicles acquired before 1 July 2006 can equal 4.5 tonnes GVM. Duty paid gaseous fuels LPG, LNG and CNG used in a heavy emergency vehicle for travelling on public roads are eligible for fuel tax credits. However, the road user charge currently reduces any fuel tax credit to nil. For more information about fuel you use to power auxiliary equipment: visit our website at ato.gov.au/fuelschemes and refer to Fuel tax credits heavy vehicles and auxiliary equipment (QC 26770) phone us on between 8.00am and 6.00pm, Monday to Friday. Fuel tax credits 7

8 To be eligible for fuel tax credits, diesel vehicles travelling on public roads and manufactured before 1 January 1996 must meet one of the environmental criteria specified by the Department of Infrastructure and Regional Development. The vehicle must meet one of the following criteria: comply with a maintenance schedule endorsed by the Transport Secretary be registered in an audited maintenance program that is accredited by the Transport Secretary meet Rule 147A of the Australian Vehicle Standards Rules 1999 (the DT80 test) be retrofitted with an engine manufactured after 1 January 1996 that meets all the following criteria be certified to the Australian Design Rule (ADR) 70/00 (or later) emission standard (currently ADR 80/00 or ADR80/01) be properly installed retain all the original (or equivalent) components. For more information about the environmental criteria for heavy diesel vehicles, refer to: Fuel Tax Credit for Heavy Diesel Vehicles (DOTARS/050054) on the Department of Infrastructure and Transport website infrastructure.gov.au Fuel tax credits criteria for heavy diesel vehicles (QC 18686) on our website at ato.gov.au/fuelschemes Emergency vessels You can claim fuel tax credits for fuel you use in an emergency vessel for: rescue, including surf rescue other marine emergency services such as fire fighting. Other business activities For other business activities, you can claim fuel tax credits for fuel you use in machinery, plant and equipment, but it must be claimed on a BAS. If you want to claim fuel tax credits for any business use other than in emergency vehicles or vessels, you must be registered for GST and make your claim on your BAS. If this is the case, then you must also claim any fuel tax credits for emergency vehicles or vessels on your BAS. The following list contains some examples of eligible business equipment it is not a complete list: all-terrain bikes (off-road use) backhoes blower vacuums brush cutters bulldozers chainsaws compressors concrete mixers drills excavators front-end loaders graders hoists pumps skid steer loaders. Visit our website at ato.gov.au/fuelschemes for more information about: fuel tax credits for GST registered businesses refer to Fuel tax credits for business (QC 18875) fuel tax credit rates for GST registered businesses refer to Fuel tax credit rates and eligible fuels (QC 21459). 8 Fuel tax credits

9 Registering How to register You need to register for fuel tax credits if you are not registered for GST and you are a: householder generating electricity for domestic use non-profit organisation claiming for fuel used in emergency vehicles or vessels. You must be registered for fuel tax credits before you can make a claim. To register you can either: complete a Fuel tax credit registration non-bas claimants form (QC 18852) available on our website at ato.gov.au/fuelschemes and send it to us phone us on between 8.00am and 6.00pm, Monday to Friday to register over the phone. You will need to provide either your or your organisation s: tax file number (TFN) or if you are an organisation your Australian business number (ABN) address financial institution details. When you have registered, we will send you a fuel tax credit claim form. If you operate a non-profit organisation and you want to register for fuel tax credits by phone, we must have you listed as an authorised contact person for the organisation. If you are registered for GST, including sole traders, you must claim your fuel tax credits on your BAS, see examples 2 and 3 on page 6. For information about fuel tax credits for GST registered businesses, visit our website at ato.gov.au/fuelschemes and refer to Fuel tax credits for business (QC 18875). Cancelling your registration If your circumstances change and you are no longer eligible to claim fuel tax credits, phone us on to cancel your registration. Fuel tax credits 9

10 Working out your eligible quantities Before you can claim your fuel tax credits, you must know what records you need to keep and how to work out what you are entitled to. Records you must keep You must keep records (for example fuel invoices and bank statements) that show: the type of fuel you acquired the quantity of each fuel type acquired the date you acquired it you have used or intend to use the fuel to generate domestic electricity operate emergency vehicles or vessels. If you claim more than $300 in a financial year, you must also keep appropriate records that show you purchased the fuel and substantiate your claim for fuel tax credits. You must keep records for five years after you make the claim. Fuel dockets or invoices are examples of acceptable records. You do not need to send the records to us unless we ask you to. If you claim fuel tax credits of $300 or less in a financial year, you do not have to keep receipts of fuel purchases. However, the fuel you acquire must be for use or actually used for either domestic electricity generation or the operation of emergency vehicles or vessels. Calculation methods To work out the quantity (litres or kilograms) of fuel you can claim fuel tax credits for, you can use any apportionment method or measure that is considered fair and reasonable for your circumstances. Methods Commonly used methods include: constructive method where you add up the eligible quantities (litres or kilograms) of each fuel type deductive method where you subtract any ineligible fuel, such as fuel used in small vehicles on public roads, from your total fuel percentage use method where you determine a reliable percentage of eligible fuel usage for a sample period and apply this over a number of tax periods estimated use method where you make a fair and reasonable estimate of the quantity of fuel you acquire for use in a fuel tax return period for eligible and ineligible activities multiple activities that have different fuel tax credit rates. Measures You may use any appropriate, reliable measure as the basis for working out the eligible quantity of fuel. Some examples of reliable measures are: odometer readings of kilometres actually travelled route distances if a vehicle travels on fixed routes kilowatt hours of electricity generated hours of operation for the vehicle or equipment average hourly fuel consumption of vehicles or equipment such as generators for example, from job sheet records. You may also use statistical sampling as part of any method you use. For information about keeping records and working out eligible quantities, visit ato.gov.au and refer to: Fuel tax credits - keeping records and calculating eligible quantities (QC 18683) Fuel Tax Determination FTD 2006/2 Fuel tax: what records are required to be kept by taxpayers to substantiate a claim for a fuel tax credit? Fuel Tax Determination FTD 2010/1 Fuel tax: is apportionment used when determining total fuel tax credits in calculating the net fuel amount under section 60-5 of the Fuel Tax Act 2006? FTD 2010/1 also refers to Practice Statement Law Administration PS LA 2010/3 Apportionment for the purposes of the Fuel Tax Act 2006 and discusses how an entity can satisfy the fair and reasonable requirement in determining entitlement to fuel tax credits. Self-assessment When you claim fuel tax credits, you are responsible for: working out if you are eligible working out the eligible quantity of fuel keeping records that support your fuel tax credit claims. We make an assessment based on the information you provide us. You may incur a penalty if you cannot demonstrate that your claim is correct. For more information about self-assessment, visit our website at ato.gov.au and refer to Guide to self-assessment for indirect taxes (QC 25975). 10 Fuel tax credits

11 Claiming fuel tax credits When you can claim Generally, you can claim your fuel tax credits whenever you like, as long as we receive your claim within four years after the date you acquired the fuel. When you claim your fuel tax credits, you need to: nominate the earliest fuel purchase date and latest fuel purchase date to indicate the claim period enter the eligible quantity of fuel (litres or kilograms) you have used or intend to use. Ways you can claim You can only claim fuel tax credits using forms we provide. We cannot accept photocopies or faxes of the forms because they are automatically scanned by equipment that requires the original form. Your claim form must be signed by you or a person authorised to act on your behalf. Get it done Send your completed claim form to us at: Australian Taxation Office Locked Bag 6678 ALBURY NSW 2640 If you need a new claim form, phone us on between 8.00am and 6.00pm, Monday to Friday. EXAMPLE: Fuel tax credit claim form Fuel tax credit Claim form Fold WHEN COMPLETING THIS FORM Facsimile and photocopied claims will not be accepted. You should read the Fuel tax credit guide for businesses (NAT 14584) or the Fuel tax credit guide domestic electricity generation and non-profit emergency vehicles or vessels (NAT 15621) before making a claim. Print clearly using a black pen. Print one character in each box, for example, Fold 1 Enter fuel quantity (round up to the nearest litres or kilograms) Eligible quantity,,,, Write your eligible quantities here,,,, 2 What return period are you claiming for? Day Month Year Day Month Year Earliest fuel purchase date Latest fuel purchase date Declaration Before you sign this form Please check that you have provided true and correct information. Penalties Penalties may be imposed for giving false or misleading information. Fold Privacy Tax law authorises us to collect information and disclose it to other government agencies. This includes personal information of the person authorised to sign the declaration. For information about your privacy go to ato.gov.au/privacy I declare that: I am a person entitled to a fuel tax credit under the Fuel Tax Act 2006, or a person duly authorised to make this claim on behalf of an eligible claimant I understand the obligations as a claimant for a fuel tax credit under the Fuel Tax Act 2006 and that the consequences for failing to meet these obligations include penalties and repayment of the credits received all the information supplied in this claim is true and correct I understand I must maintain records which substantiate purchase and usage of the fuel relating to this claim and I will keep these records for five years after the Tax Office receives this claim, and the fuel was purchased for use, or was used, by the claimant in eligible vehicles, vessels or equipment for an eligible purpose. Print name Contact phone number Fold Write your earliest purchase date here Write your latest purchase date here Signature Date Day Month Year Please indicate the time taken to complete this form, including getting the necessary information. Minutes NAT Sensitive (when completed) Fuel tax credits 11

12 Amending your claim If you need to change an amount of fuel tax credits you have claimed, you can do so by making an adjustment or by correcting a mistake. If you simply forget to claim fuel tax credits that you are entitled to, this is not a mistake you can claim for the quantity you omitted on a later claim form. Where we amend an earlier assessment of your fuel tax amount we will issue a notice of amended assessment. Adjustments You need to make an adjustment if your entitlement was correct at the time you claimed it but later changed (either increased or decreased) for a number of reasons. For example, you: used fuel for a different purpose than originally intended which changed your entitlement used less fuel for an eligible use than originally intended claimed for fuel and it was later lost, stolen or otherwise disposed of decreasing your fuel tax credit entitlement. You must make adjustments on the claim form in the period you become aware of them. If your adjustment decreases your fuel tax credit entitlement, you must: end your return period within 90 days of becoming aware of the adjustment lodge that claim with us within 21 days of the end of the return period. Your adjustment must be in litres (or kilograms for LNG and CNG) and you need to decrease the quantity of eligible litres (or kilograms) you claim for that fuel type and the activity on your fuel tax credit claim form. If your adjustment increases your eligible quantity, write to us and provide: your name and contact details your excise identification number (EIN), TFN or ABN the start and end date for the return period the quantity of eligible litres (or kilograms) for each fuel type and activity before the adjustment the quantity of the adjustment in litres (or kilograms) for each fuel type and activity for the period. Get it done To advise us of an increase to your eligible quantity, write to us at: Australian Taxation Office PO Box 3007 ALBURY NSW 2740 Mistakes Making a mistake means you have claimed fuel tax credits you were not entitled to, or you were entitled to a different amount for example, if you make a calculation error. If you did not claim an amount of fuel tax credits you were entitled to on a previous claim, you can claim it on a later claim form. This is not considered a mistake. You can change your eligible quantity of fuel on your claim form to account for a mistake if both of the following apply: the net effect of your mistake is less than $5,000 due to the mistake, your fuel tax credits for the return period are zero or more. To work out if you are within the mistake limit of less than $5,000, you need to multiply the number of eligible litres (or kilograms) by the relevant fuel tax credit rate. For more information about the fuel tax credit rates: visit our website at ato.gov.au/fuelschemes and refer to Fuel tax credit rates - domestic electricity and emergency vehicles and vessels (QC 35331) phone us on between 8.00am and 6.00pm, Monday to Friday. You must write to us if the net effect of your mistakes: is an amount of fuel tax credits of $5,000 or more decreases your entitlement to less than $5,000 and it is too large to offset against your claim. Your letter must be signed by you or a person authorised to act on your behalf. It must also contain: your name and contact details EIN, TFN or ABN the start and end date for the return period in which the mistake occurred the fuel type and activity that the mistake occurred with the amount of the mistake in eligible litres (or kilograms) the reason for the mistake. To advise us of a significant mistake, write to us at: Australian Taxation Office PO Box 3007 PENRITH NSW Fuel tax credits

13 Penalties and the general interest charge You may incur a penalty if you claim more fuel tax credits than you are entitled to. You may also incur a general interest charge (GIC) if you have: made an adjustment that decreases the amount of fuel tax credits you are eligible to claim and you became aware of the need for the adjustment in an earlier period changed a claim due to a mistake that involves more than $5,000 in fuel tax credits and does not fit the rules for correcting mistakes. If you receive an overpayment of fuel tax credits, the overpaid amount should be treated as tax that is due. This means that you must repay the overpayment plus any penalties and GIC owing from the date of the overpayment. If you make a genuine mistake and let us know, we may adjust any penalties that apply. Fuel tax credits 13

14 Receiving your fuel tax credits We will work out your fuel tax credit amount and pay it into your nominated bank account. We will issue you a notice of assessment telling you of the amount and send you a new claim form. If you have any other tax debts, or some other Australian Government debts, your fuel tax credits may be offset against them. Fuel tax credits and your tax return Domestic electricity generation Fuel tax credits you claimed for fuel you used to generate domestic electricity are not assessable income and you do not need to include them in your tax return. Operating emergency vehicles or vessels Fuel tax credits you claimed for fuel your non-profit organisation used to operate emergency vehicles or vessels are assessable income. This means you must include them in your organisation s tax return. However, this does not apply if you operate a non-profit organisation that is exempt from income tax. Non-profit organisations that are exempt from income tax do not need to lodge tax returns unless specifically asked to. 14 Fuel tax credits

15 More information For more information you can also: visit ato.gov.au/fuelschemes phone between 8.00am and 6.00pm, Monday to Friday write to Australian Taxation Office PO Box 3001 PENRITH NSW 2740 If you do not speak English well and need help from the ATO, phone the Translating and Interpreting Service on If you are deaf, or have a hearing or speech impairment, phone the ATO through the National Relay Service (NRS) on the numbers listed below: TTY users, phone and ask for the ATO number you need Speak and Listen (speech-to-speech relay) users, phone and ask for the ATO number you need internet relay users, connect to the National Relay Service at relayservice.gov.au and ask for the ATO number you need.

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