Fuel tax credits for passenger air conditioning

Nov25

Fuel tax credits for passenger air conditioning

Flor- Hanly - Monday, November 25, 2019

Fuel tax credits for fuel powering passenger aircon

From 1 November 2019, you must claim fuel tax credits for fuel used to power passenger air conditioning units (for example in commercial buses and coaches) at the rate for ‘heavy vehicles for travelling on public roads’. 

fuelThis rate is reduced by the road user charge (RUC).

When you claim fuel tax credits for fuel used in passenger air conditioning of a bus or coach, for fuel acquired:

  • before 1 November 2019, you can use the ‘all other business uses’ rate
  • from 1 November 2019, you must use the fuel tax credit rate ‘for heavy vehicles for travelling on public roads’.
You may need to use different rates in the December quarter activity statement for fuel acquired before and after 1 November 2019.

This change is a result of the decision in Linfox Australia Pty Ltd v Commissioner of Taxation. Call Flor-Hanly's accountants in Mackay on 07 4963 4800 for assistance with the new rate.




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