Primary producers, agricultural property and fuel tax credits

To be eligible to claim a fuel tax credit for fuel used in a road vehicle when environmental criteria aren’t met, it must be used in carrying on a primary production business and more than 50% of distance travelled (or time spent) must be on agricultural property.

Draft Fuel Tax Determination FTD 2019/D1, released last Thursday, provides the Australian Taxation Office’s (ATO’s) view of the conditions needing to be met to come within one of the exemptions for claiming a fuel tax credit where a motor vehicle does not meet certain environmental criteria.The specific exemption in subsection 41-25(2)(a) of the Fuel Tax Act 2006 allows fuel used in a motor vehicle not meeting specific environmental criteria to qualify for a fuel tax credit provided the motor...

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Authors: Andrew Larmour

Published Date: 29 November 2019