How to maximise your fleet’s FTC rebate
How to maximise your fleet’s FTC rebate
Did you know that, if your business uses vehicles off-road for travel, idling or operating auxiliary equipment (such as compressors, refrigeration units, farming or hydraulic machinery) you could claim the off-road rate of up to 42.3 cents* per litre for your FTC?
That’s $23.00 more per 100 litres of fuel than the standard on-road rate!
And, despite light vehicles not being entitled to claim on-road FTC, you can claim up to 42.3 cents* per litre if they operate in off-road areas.
What’s more, if you can prove a pattern of consistent usage via a telematics system, you can recover under-claimed FTC rebates for the previous four years.
That could add up to a significant amount of extra money in rebates for some companies!
Many Australian businesses miss out on the maximum FTC rebate
Claiming fuel tax credits (FTC) is routine for most Australian businesses that operate vehicle fleets and equipment. But most businesses only use the standard on-road FTC rate of 16.5 cents per litre of fuel, regardless of whether the fuel was used on public roads or off-road.
This is usually because it’s the easiest way to calculate FTC and doesn’t require a lot of record-keeping. Many businesses also don’t have the necessary resources to capture the right FTC claim information – particularly when it comes to accurately recording off-road business activity. Instead, they just use average percentages – which only provides for a ‘minimal’ rebate!
All you need is your fuel receipts and your accountant does the rest.
If this is your business, you could be leaving thousands of dollars on the table in additional FTC rebates!
While claiming FTC is optional, accurately documenting how and where you use your fuel means that you can recover the maximum rebate you’re entitled to – which can then be put back into running your business.
"EROAD has saved us so much time by reducing the number of phone calls we make each day, as we know where our trucks are at any time. EROAD has made life so much easier and we especially love that EROAD tracks our off-road usage, so we can now gain a more accurate Fuel Tax Credit rebate."
Let technology take the FTC driving seat for you!
Telematics technology has revolutionised the fleet management business. Not only does it capture accurate data to help businesses operate their fleets safely, more efficiently and productively, it also uses advanced GPS-tracking technology to map real-time locational and fuel usage data (on and off-road) to maximise your FTC returns.
EROAD’s Fuel Tax Credit Solution, which has achieved an Australian Tax Office (ATO) class ruling, automates the entire FTC claims process which provides significant benefits to your business:
- It takes the guesswork out of your FTC claims as it records the location of every litre of fuel used
- It then automatically calculates your FTC – saving you significant admin time at the same time as maximising your claim
- It can also help you prove a current six-month pattern of use for your vehicles which will enable you to then claim retrospectively for under-claimed FTC for the previous four years.
On-road vs off-road FTC rebates
The FTC rebate for fuel used off-road is over 2.5 that of the on-road rate – which could make a significant difference to the amount of FTC you can claim back.
|Standard FTC on-road rebate rate for eligible fuels for heavy||The FTC off-road rebate rate for eligible fuels running vehicles and equipment|
Businesses are entitled to claim up to 42.3 cents p/litre on diesel, petrol and some blended fuels for the following activities:
- Light vehicles travelling or idling off public roads or on private property
- Heavy vehicles travelling or idling off public roads or on private property
- The use of auxiliary equipment i.e. concrete trucks, compressors, air conditioning, refrigeration units etc
Example of an FTC claim using EROAD’s FTC Solution
The following table shows the difference in claiming 100 litres of fuel at the standard on-road FTC rate verses using EROAD’s FTC Solution to achieve the maximum entitlement.
|Calculation based on standard on-road rate of 16.5 cents/litre||Calculation based on accurate data capture of on-road & off-road activity|
|100 litres of petrol x 16.5 cents = $16.50||100 litres of petrol:|
EROAD’s FTC solution calculated:
EROAD’s FTC Solution also captured the following off-road activity:
On-road travel (76.5 litres @ 16.5 cents) $12.62
|Total Rebate: $16.50||Total rebate: $22.91|
By using accurate data to capture and claim the right fuel for the right use and location, this business could potentially claim more FTC per 100 litres than by just using the standard on-road calculation rate.
That adds up to a lot of additional savings!