Claiming FTC for the Farming/Agriculture sector
Claiming FTC for the Farming/Agriculture sector
Given most of the agriculture sector’s activities are carried out off-road on private property, many of the activities where fuel is used, such as in tractors and or for activities like drilling, fencing or maintenance are entitled to the maximum FTC claim rate.
But did you know that fuel used in both heavy and light vehicles travelling between sites, but off the main road network, can also be claimed at the highest FTC rate?
According to the ATO, you can claim fuel tax credits for taxable fuel (for example, diesel, petrol or duty paid gaseous fuels) used in any agricultural activity if the purpose of your business is to obtain produce for sale (or it directly supports such a business), including:
- cultivating or gathering in crops
- cultivating the soil
- rearing livestock
- viticulture, horticulture, pasturage or apiculture
- transporting livestock other than on a public road
- hunting and trapping
- removing waste from an agricultural activity.
The following activities are also eligible if they are carried out on an agricultural property:
- drilling bores
- building or maintaining firebreaks
- fencing
- frost abatement
- controlling weeds, pests or disease
- building or maintaining sheds, pens, silos, silage pits, dams, water tanks, troughs, channels, irrigation systems and drainage systems
- planting and tending trees not intended for felling
- constructing earthworks, including dams, levee banks, windbreaks, contour banking and levelling or grading land
- conserving soil and water
- milking, shearing and mustering stock
- breeding animals for working the land, such as draught horses
- breeding animals for livestock activities, such as stock horses or working dogs
- baling hay on the agricultural property where the hay was cut (see note 3)
- service, maintenance and repairing business vehicles or equipment
- storing or packing produce
- preventing produce deterioration
- disposing of waste from an agricultural activity.
The following activities are also eligible for fuel tax credits at the full rate if they are carried out on, or adjacent to, an agricultural property:
- pumping and supplying water solely for use in agriculture
- building or maintaining firebreaks
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