Fuel prices are expected to surge following the end of the Australian Government’s six-month reduction in fuel excise, as part of the Federal Budget 2022-23.
The Federal Budget halved fuel excise between 30 March and 28 September 2022, meaning the Fuel Tax Credit will be restored as of today.
As a result, the road user charge for liquid fuels will increase to 27.2 cents per litre and the fuel tax credit rate for fuels used in heavy vehicles will change to 18.8 cents per litre.
However, the Australian Competition and Consumer Commission (ACCC) has assured that retailers will wait until stock in the supply chain is exhausted before applying the new price.
From an operators perspective, the Australian Tax Office (ATO) is advising that increased fuel tax credit rates will apply, meaning eligible businesses must apply the application fuel tax credit rate based on the date the fuel was acquired.
It has also stated that eligible businesses using fuel in heavy vehicles for travelling on public roads can claim fuel tax credits for fuel acquired.
However, they cannot be claimed between 30 March to 28 September 2022 because the road user charge exceeds the excise duty paid.
For the latest fuel tax credit rates visit ato.gov.au/fueltaxcreditrates.
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