With yet another fuel rebate rate hike, now is the time for transport operators to look for opportunities to generate cashflow. Detailed, accurate data provided by GPS telematics solutions enable businesses to backdate claims up to 4 years.
On 1 February 2021, the Australian Taxation Office announced a slight increase to fuel tax credit (FTC) rates in line with fuel excise indexation. Indexed twice a year, in February and August, FTC rates change regularly to keep with the consumer price index (CPI), which rose 0.9% this quarter.
The current off-road rate is 42.7 cents per litre, up from 42.3 cents per litre over the previous six months. Without detailed documentation, businesses must claim the standard on-road rate, now 16.9 cents per litre, up from 16.5 cents per litre over last period. Businesses that claim less than $10,000 in fuel tax credits each year can calculate FTC claims using ATO's Fuel Tax Calculator to apply the correct rate at the end of the business activity statement (BAS) period.
How telematics simplifies FTC rebates
For businesses who haven't kept detailed records, GPS telematics technology can bridge the gap, identifying off-road use and automatically documenting it for use in FTC claims and internal reporting. This is useful not only for new claims but old claims as well, which can be resubmitted at the higher rate for that BAS period. Telematics provider EROAD offers advanced software that enables users to establish a 6-month pattern of use so accurate that it can be extrapolated back in time to claims up to 4 years old, in line with ATO rules.
The EROAD product also features a geofencing capability that allows users to create custom off-road zones. Not only can it tell when users are off-road but it also pulls all relevant data automatically and accurately, reducing administrative burden while substantially increasing claim value.
In this increasingly competitive and volatile market, transport operators will be looking for opportunities to maximise new FTC claims and review old claims that could result in savings of thousands.
