Skip to main content

Fuel excise rates reduced for fuel 6 months

A few days ago, the Australian Federal Government announced a temporary reduction in the excise rate for diesel and petrol fuels from 44.2 cents to 22.1 cents per litre from 30 March 2022 for a period of 6 months. These changes have now passed in to law and taken effect.
 
These measures are intended to ease cost of living pressures for households and businesses. For all Prism customers this will result in direct savings on the cost of fuel for the effective period. As strong supporters of the transport industries that keeps this country moving, the Prism team are glad to see our customers benefiting from these measures.
 
The effect of the changes on Fuel Tax Credits (FTC) is to reduce the FTC rate for Heavy Vehicles used on public roads to zero and to reduce the FTC rate for non-public road use to 22.1 cents per litre for the effective period. Prism has been updated with these rates and they will be reflected in reports delivered from April.

There are some interesting follow-on implications resulting from these changes. Firstly, the Road User Charge (RUC) has not been changed but during the effective period the excise charged will be less than the RUC, so on-road users are effectively gaining a 4.3 cents per litre reduction in RUC.
 
Second, since all FTC claims submitted during the effective period will comprise only the off-road and auxiliary use components, there is added emphasis on ensuring these are as accurate as possible. There are also more complex residual issues relating to time of fuel acquisition versus time of usage for fuel deliveries straddling the rate change date that may present challenges in some sectors.
 
Given the above, now is a good time to review your fuel usage, apportionment approach and configuration, purchasing arrangements and tax positions, including retrospectively. The Prism team are ready to assist with any technical requirements and our network of professional tax partners are available to help with all matters relating to FTC and other tax obligations.

More information on the budget’s fuel excise changes can be found here. 

As always, you can contact our team at support@nuonic.com.au for further information or assistance.

Comments

Post a Comment

Popular posts from this blog

Road-side insights with Lowes Petroleum

We recently caught up with Jake Myler , Head of Fleet and Compliance at Lowes Petroleum, to hear how the bulk fuel carrier has been tracking through recent events and thinking about advances in fleet technology. Can you tell us a little about your background in the road transport industry and your career path to your current position? I have been involved in the transport industry since I began my working career over 15 years ago. Beginning in the steel recycling industry and now petroleum, I have held positions from scheduling, operations management, logistics analytics and currently Head of Fleet & Compliance. As Head of Fleet and Compliance at Lowes Petroleum what are your primary responsibilities?   To ensure efficient and safe operations of our fleet of heavy vehicles. This includes purchasing fit for purpose assets, ensuring company and regulatory compliance, and overseeing logistics efficiency & strategy. Has your business been impacted by the uncertainty and impediments
Post a Comment
Read more

4 important questions to ask about your telematics data

When evaluating a new telematics system, an important consideration that often gets overlooked is the quality and accessibility of the data generated by the devices. While you may be installing or upgrading telematics based on an immediate operational need, such as complying with safety regulations, it is common to subsequently leverage the new and highly detailed data you now have for the many business optimisation purposes it it assist with. Having integrated over 20 telematics data feeds into our GPS Analytics platform, Prism, and processed raw data from many more, we have seen all manor of data formats, features and access methods. But why would you need or want to access raw data? Here are some common reasons: To perform analysis, either internally or via a consultant or subcontractor, that is specific to your business or for which a pre-existing report does not exist in the telematics system. To use third-party applications, such as Prism, that utilise GPS and other vehicle data
Post a Comment
Read more