Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/27/2013

Australia - Opportunities for business taxpayers with fuel tax credit 

August 27:  Taxpayers need to determine that their systems have been changed to reflect the new fuel tax credit rates. With limited exceptions, the new rates are lower than the pre-June 2013 rates because of increases in the road user charge and carbon price.

Business taxpayers also need to examine whether their calculations properly reflect their fuel tax credit entitlements. Many taxpayers claim fuel tax credits in the period when they use the fuel—rather than when they purchase the fuel.


What can be easily overlooked with a use-based method is when taxpayers calculate the fuel tax credit using the rate that existed at the time of purchase—and not when the fuel is used.


Shifting to a purchase-based method may assist in resolving this issue and result in a cash-flow benefit; however, there can be disadvantages and complexities with such a method, particularly if fuel is used for a variety of purposes.


Read an August 2013 report prepared by the KPMG member firm in Australia: Fuel tax credit rate changes: Are you short-changing yourself?




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now