Instructions for fuel tax credit claimants
Fuel tax credits –
making adjustments
and correcting errors
For more information,
visit ato.gov.au
NAT 15681-11.2013
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COMMONWEALTH OF AUSTRALIA, 2013
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PUBLISHED BY
Australian Taxation Office
Canberra
November 2013
JS 29504
CONTENTS
ABOUT THIS GUIDE
2
Recent changes
2
ABOUT FUEL TAX CREDITS
3
Fuel tax credit calculator
3
Definition of adjustments and errors
3
ADJUSTMENTS
3
Types of adjustments
4
Examples of adjustments
5
ERRORS6
Correcting credit errors
6
Correcting debit errors
7
How to make corrections on your current BAS
10
WHEN AN ERROR CANNOT BE CORRECTED
ON YOUR CURRENT BAS
10
If you are subject to compliance activity
10
If you have corrected the error in another tax period
11
Recklessness and intentional disregard of the law
11
RECORD KEEPING
12
Self-assessment12
PENALTIES AND GENERAL INTEREST
CHARGES
MORE INFORMATION
12
inside back cover
Fuel tax credits – making adjustments and correcting errors
1
ABOUT THIS GUIDE
This guide explains how to change your claim for fuel tax credits
on your business activity statement (BAS). It explains the:
■■ difference between adjustments and errors
■■ types of adjustments and how to make them
■■ types of errors and how to correct them.
You can use this guide to change fuel tax credit claims you
made in an earlier tax period, if the tax period for the BAS you
use to make the change started on or after 1 July 2012. This
guide includes changes that took effect from 10 May 2013.
You cannot use this guide if the tax period for the BAS
you use to make the change started before 1 July 2012.
Instead, refer to Fuel tax credits – making adjustments and
correcting mistakes before 10 May 2013 (QC 35869).
You cannot claim fuel tax credits on a BAS if you are
either a:
■■ householder using fuel for domestic electricity generation
■■ non-profit organisation operating emergency vehicles or
vessels and not registered, or required to be registered,
for GST.
While the information in this guide is still relevant to you,
you must claim fuel tax credits on your Fuel tax credits
claim form.
For more information, refer to Fuel tax credits – domestic
electricity generation and non-profit emergency vehicles
or vessels (QC 18867).
RECENT CHANGES
New determination for correcting errors
On 9 May 2013, a new determination was registered that sets
out the circumstances in which errors (previously referred to as
mistakes) in fuel tax credit claims made in earlier tax periods can
be corrected by taking them into account in a later tax period.
For more information about correcting errors:
‘Errors’ on page 6
■■ refer to the new determination FTE 2013/1 Fuel tax:
Correcting Fuel Tax Errors Determination 2013.
■■ see
Fuel used to power auxiliary equipment of a
heavy vehicle
Fuel you use to power auxiliary equipment of a heavy vehicle
travelling on a public road – such as a refrigeration unit or a
concrete mixing barrel – is not reduced by the road user charge
or the carbon charge.
A heavy vehicle has a gross vehicle mass (GVM) greater than
4.5 tonne – diesel vehicles acquired before 1 July 2006 can
equal 4.5 tonne GVM.
You may be able to correct previous fuel tax credit claims for
fuel you used to power auxiliary equipment of a heavy vehicle
travelling on a public road, if you didn’t base those claims on
this change.
For more information about when the road user charge
affects fuel tax credits, refer to Fuel Tax Ruling FTR 2008/1
Fuel tax: vehicle’s travel on a public road that is incidental
to the vehicle’s main use and the road user charge.
You can use the information in this guide to correct
previous claims impacted by this change. However, for
more information and examples specific to this change,
refer to Fuel tax credits – correction of credits relating to
the road user charge for certain fuel uses in heavy vehicles
(QC 26770).
2
Fuel tax credits – making adjustments and correcting errors
ABOUT FUEL TAX CREDITS
ADJUSTMENTS
Fuel tax credits provide you with a credit for the fuel tax
(excise or customs duty) that is included in the price of fuel.
The amount you can claim depends on what fuel you use
and how you use it.
Making an adjustment may increase or decrease your fuel tax
credit entitlement. A decrease may mean you have to repay a
debt to us.
For more information about fuel tax credits refer to:
tax credits for business (QC 18875)
■■ Fuel tax credits – how to complete your business activity
statement (QC 18918).
■■ Fuel
To help get your fuel tax credit claims right, refer to Fuel tax
credits – five tips to avoid common mistakes (QC 19369).
If an adjustment results in an increase in your fuel tax
credit entitlement, then you include the dollar amount of the
adjustment to your fuel tax credit entitlement at label 7D
(Fuel tax credit) on your BAS.
If an adjustment results in a decrease in your entitlement, then
you have been overpaid fuel tax credits. Include this dollar
amount at label 7C (Fuel tax credit over claim) on your BAS.
FUEL TAX CREDIT CALCULATOR
Our Fuel tax credit calculator (QC 18866), available at
ato.gov.au/fuelschemes, is now quicker and easier to use.
It helps you work out how much you can claim, including any
adjustments or corrections you need to make.
DEFINITION OF ADJUSTMENTS AND ERRORS
An adjustment is necessary when you have already claimed fuel
tax credits based on your intention to use that fuel in a certain
way, and you end up using some of that fuel in a different way
that gives a different fuel tax credit amount.
You make an error and need to correct it when the fuel tax
credit amount you claimed on your BAS was not correct at the
time you lodged it. This is because you made a mistake – such
as clerical or transcription errors or claiming for fuel not eligible
for fuel tax credits.
If you forget to claim fuel tax credits that you are
entitled to or delay claiming fuel tax credits, this is not
considered an error or adjustment.
You can claim these fuel tax credits using your current BAS
rather than revising an earlier BAS that relates to the date of
the invoice.
If you are including fuel you omitted from a previous BAS
period, you need to use the rate that applied when you
acquired the fuel. However, for fuels used in a heavy vehicle
for travelling on a public road, you need to use the rate in
effect at the beginning of the tax period covered by your
current BAS.
There are time limits for claiming fuel tax credits. Generally
you must claim within four years from the end of the tax
period the fuel was acquired in.
Fuel tax credits – making adjustments and correcting errors
3
Adjustments
TYPES OF ADJUSTMENTS
You may have to make a fuel tax credit adjustment on your BAS
for a number of reasons. The table below outlines how to make
an adjustment in a range of situations.
TABLE 1: Types of adjustments
Type of adjustment
Increase or
decrease in
entitlement
Which label to complete
on your BAS
When to make the
adjustment
Change to your intended use of fuel
Used more fuel for an eligible use than intended.
See example 1 on page 5.
Increase
Label 7D
Fuel tax credit
Used less fuel for an eligible use than intended.
See example 2 on page 5.
Decrease
Label 7C
Fuel tax credit over claim
Used the fuel for a different eligible use than
intended, increasing your entitlement.
See example 3 on page 5.
Increase
Label 7D
Fuel tax credit
Used the fuel for a different eligible use than
intended, decreasing your entitlement.
See example 4 on page 6.
Decrease
Label 7C
Fuel tax credit over claim
Decrease
Label 7C
Fuel tax credit over claim
On the BAS for the tax
period in which you
become aware of the
actual use of the fuel.
Fuel lost, stolen or otherwise disposed of
Claimed for fuel for an eligible use and it was later
lost, stolen or otherwise disposed of, decreasing
your fuel tax credit entitlement.
See example 5 on page 6.
On the BAS for the tax
period in which you
become aware of the loss,
theft or disposal of the fuel.
Generally, when calculating your fuel tax credit
entitlement, use the fuel tax credit rate that applied at the
time you acquired the fuel. However, for fuel you use in
heavy vehicles for travelling on a public road, you need
to use the rate in effect at the beginning of the tax period
covered by your BAS.
Rates are subject to change annually to 1 July 2015, then each
six months after that, due to changes in the carbon price.
If you pay your GST in instalments and are registered for fuel tax
credits, special rules apply. Under these rules, an adjustment
may be delayed to a later tax period. For more information, refer
to Fuel tax credits and GST instalments (QC 21305).
4
Fuel tax credits – making adjustments and correcting errors
Adjustments
EXAMPLES OF ADJUSTMENTS
EXAMPLE 1: Change in the use of fuel – used more fuel
than intended, increasing entitlement
Peter has a grounds maintenance business. He buys
1,500 litres of diesel on 21 July 2013, intending to use
500 litres in his slashers and mowers (eligible for fuel tax
credits) and 1,000 litres in his two-tonne diesel truck that
travels on public roads (ineligible for fuel tax credits). Peter
claimed fuel tax credits on his September quarterly BAS of
$158 (500 × $0.31622) for his intended use of diesel in the
slashers and mowers. The fuel tax credit rate for this activity
is reduced by the carbon charge for diesel, which is subject
to change.
On 15 October 2013, Peter sells his truck and buys a
two-tonne petrol utility for the same use (also ineligible for
fuel tax credits), so he decides to use the remaining diesel
(1,000 litres) in his slashers and mowers.
Peter can claim an increase in fuel tax credit entitlements
of $316 (1,000 × $0.31622) at label 7D (Fuel tax credit) in
his December quarterly BAS as this is the BAS for the tax
period in which he became aware of the changed use of
the fuel.
EXAMPLE 3: Change in the use of fuel – used for a
different eligible use, increasing entitlement
Sandra has a primary production business. On 15 July
2013, she buys 5,000 litres of diesel intending to use
2,000 litres in her 10-tonne truck carrying produce to the
rail head and 3,000 litres in her tractors and harvester.
Both activities are eligible for fuel tax credits but different
rates apply. Sandra claimed $1,384 on her BAS for the
September 2013 quarter [(2,000 × $0.12003 = $240.06)
plus (3,000 × $0.38143 = $1,144.29)]. Sandra’s primary
production business activity is exempt from the carbon
charge.
In October, her truck broke down. Sandra had only
used 1,000 litres in her truck, so she used the remaining
1,000 litres (intended for her truck) in her tractors and
harvester instead. As Sandra has used the fuel for a
different use than intended, her actual entitlement to fuel
tax credits should be $1,645 (1,000 × $0.12003 = $120.03)
plus (4,000 × $0.38143 = $1,525.72).
Sandra claims an increase in fuel tax credit entitlements
of $261 ($1,645 – $1,384) at label 7D (Fuel tax credit) on
her December quarterly BAS as this is the BAS for the tax
period in which she becomes aware of the changed use
of the fuel.
EXAMPLE 2: Change in the use of fuel – used less fuel
than intended, decreasing entitlement
Chris has an earthmoving business. On 21 July 2013, he
buys 4,000 litres of diesel intending to use it in his front-end
loader and backhoe working on-site (eligible for fuel tax
credits and subject to the carbon charge). Chris claims fuel
tax credits of $1264 (4,000 × $0.31622) on his September
quarterly BAS.
In October, Chris changes his business activities. He
sells his backhoe and uses 2,000 litres of the diesel in his
one‑tonne utility driving between sites. Chris has used
less fuel in an eligible activity than he claimed for, as the
actual use of the 2,000 litres in his utility is ineligible for
fuel tax credits.
Chris decreases his fuel tax credit entitlements by $632
(2,000 × $0.31622) at label 7C (Fuel tax credit over claim)
on his December quarterly BAS as this is the BAS for the
tax period in which he becomes aware of the changed use
of the fuel.
Fuel tax credits – making adjustments and correcting errors
5
ERRORS
EXAMPLE 4: Change in the use of fuel – used for a
different eligible use, decreasing entitlement
Leo is a commercial fisherman and only uses his boat for
business purposes. He buys 12,000 litres of diesel on
28 August 2013, intending to use it in his boat (eligible
for fuel tax credits and an activity exempt from the
carbon charge), so Leo claimed fuel tax credits of $4,577
(12,000 litres × $0.38143) on his September quarterly BAS.
In October, Leo uses 1,000 litres of the diesel in his
forklift, which he uses on the dock to load his catch for
transportation. Leo has used the fuel for a different eligible
use than intended, decreasing his entitlement. As it has
a different rate, Leo is only entitled to $0.31622 per litre
for the 1,000 litres he used in the forklift as it includes the
carbon charge.
Leo calculates the adjustment by subtracting his actual
entitlement from the original amount of fuel tax credits
he claimed.
Leo’s actual entitlement is $4,511
[(11,000 × $0.38143 = $4,195.73) plus
(1,000 × $0.31622 = $316.22)].
Leo decreases his fuel tax credit entitlements by $66
($4,577 – $4,511) at label 7C (Fuel tax credit over claim)
on his December quarterly BAS as this is the BAS for the
tax period in which he becomes aware of the changed
use of the fuel.
EXAMPLE 5: Fuel lost, stolen or otherwise disposed of,
decreasing entitlement
Gerry stores his diesel in a bulk tank at his earthmoving
business. In September 2013, Gerry buys 5,000 litres
intending to use it in his front-end loader (eligible for fuel
tax credits but subject to the carbon charge) so, on his
September quarterly BAS he claimed fuel tax credits of
$1,581 (5,000 × $0.31622).
In October, the tank is damaged and Gerry estimates half
the fuel (2,500 litres) is lost. Gerry cannot use that fuel in
his business so he is not entitled to fuel tax credits for the
lost fuel.
Gerry decreases his fuel tax credit entitlements by $790
(2,500 × $0.31622) at label 7C (Fuel tax credit over claim)
on his December quarterly BAS as this is the BAS for
the tax period in which he becomes aware of the loss of
the fuel.
6
An error occurs when you made a mistake in working out your
fuel tax credit claim on an earlier BAS.
If you realise you have made an error on an earlier BAS, you
must correct it. In order to correct your error, you need to work
out the amount that has been over claimed or under claimed.
You made a:
■■ credit error on a previous BAS if the error resulted in you
claiming less fuel tax credits than you were entitled to – for
example, if you used a lower rate than you were entitled to
■■ debit error on a previous BAS if the error resulted in you
claiming more fuel tax credits than you were entitled to – a
debit error can occur if you
–– made clerical errors, for example, double counting some
fuel purchases
–– over calculated your eligible quantity of fuel
–– used a higher fuel tax credit rate than you were entitled to
–– claimed fuel tax credits for all fuel acquisitions instead of
only those intended for use in an eligible activity.
If you did not make an adjustment in the BAS for the tax period
in which you become aware an adjustment was required, it
becomes an error.
If you made multiple errors in a tax period, you must treat each
error individually when determining if it can be corrected and
how to correct it.
It is not an error if:
is an adjustment
■■ you are just claiming fuel tax credits on a later BAS – for
example, you forgot to include an invoice in a previous
BAS or you postpone a fuel tax credit claim.
■■ it
CORRECTING CREDIT ERRORS
You can correct any credit errors on your BAS if all of the
following conditions apply for each credit error:
■■ The error is within the credit error time limits.
■■ The error doesn’t relate to a matter that is subject to a
compliance activity or was made in a tax period that is subject
to a compliance activity.
■■ You have not corrected the error in another tax period.
You may need to increase your fuel tax credits in your current
BAS if you made a credit error. To do this, include the dollar
amount of the error to your fuel tax credit entitlements at
label 7D (Fuel tax credit) on your current BAS.
Credit errors are not subject to value limits.
Fuel tax credits – making adjustments and correcting errors
Errors
Credit error time limits
Error occurring on or after 1 July 2012
If you made a credit error in a BAS for a tax period that started
on or after 1 July 2012, you can correct the error on a BAS
within the four year period of review, that is, four years from
the day after you lodge the BAS in which the error occurred.
EXAMPLE 6: Four year period of review
Peter, a monthly BAS lodger, worked out he made an error
in his BAS for the tax period ended 30 September 2013.
He used the wrong fuel tax credit rate and claimed too
much fuel tax credits for that period.
Because he lodged the BAS on 1 October 2013, Peter
can correct that error on a BAS for a tax period that starts
before 2 October 2017.
For more information about the four-year time limit for
claiming fuel tax credits, refer to Changes to time limit on
entitlements to ITCs and fuel tax credits (QC 22786).
Errors occurring before 1 July 2012
If you made a credit error in a BAS for a tax period that started
before 1 July 2012, you can correct the error in a BAS if you
lodge it within four years of the end of the tax period in which
you made the error.
Your entitlement to a fuel tax credit ends four years from the end
of the tax period to which the credit relates unless one of the
following occurs:
■■ You notify us of the entitlement to the credit during the
four year period.
■■ We notify you of your entitlement to the credit during the
four year period.
EXAMPLE 7: Credit errors made before and after
1 July 2012
Horatio Inc operate an agriculture business with a GST
turnover of $4 million. Horatio Inc determine they have
made a number of credit errors (claimed less than they
were entitled to) totalling $43,000 in fuel tax credits in BAS
lodged since 2007. The breakdown of their credit errors is:
■■ quarter ended 31 December 2007 – $1,000 under
claimed
■■ quarter ended 30 September 2010 – $22,000 under
claimed
■■ quarter ended 30 September 2012 – $18,000 under
claimed
■■ quarter ended 30 June 2013 – $2,000 under claimed.
Horatio Inc would like to correct these credit errors on their
BAS for the quarter ended 31 March 2014.
The time limit for correcting the credit error made on the
BAS for the quarter ended 31 December 2007 expired on
31 December 2011. Horatio Inc did not notify us about this
error. Therefore, the error cannot be corrected.
The $22,000 error on the BAS for the quarter ended
30 September 2010 can be corrected on the BAS for
the quarter ended 31 March 2014 as it was lodged
within four years from the end of the tax period for the
September 2010 quarterly BAS.
The errors made on the BAS for the quarters ending
30 September 2012 and 30 June 2013, totalling $20,000,
can also be corrected on the BAS for the quarter ended
31 March 2014 as they were made within the four year
period of review.
CORRECTING DEBIT ERRORS
You can correct a debit error on your BAS if all the following
conditions apply for each debit error:
■■ The error is within the debit error time limit.
■■ The error or net sum of the debit errors is within the debit
error value limit.
■■ You are not subject to a compliance activity.
■■ You have not corrected the error in another tax period.
■■ The error was not as a result of recklessness or intentional
disregard of the law.
You may need to decrease your fuel tax credits in your
current BAS if you made a debit error. To do this, write the
dollar amount at label 7C (Fuel tax credit over claim) on your
current BAS.
Fuel tax credits – making adjustments and correcting errors
7
Errors
In working out whether a debit error can be corrected
on a BAS, each of the conditions must be satisfied. If any of
the conditions are not satisfied, you cannot correct the debit
error in a later tax period.
Debit error time limits
Time limits apply for the correction of debit error from the time
the debit error occurred (not when it was discovered).
You can correct a debit error on your current BAS if it is within
the debit error time limit that corresponds with your current GST
turnover in the table below:
TABLE 2: Time limits for correcting debit errors
Current GST
turnover
Less than $20m
$20m or more
Jiesi lodges her BAS quarterly. In December 2013, whilst
preparing her BAS for the quarter ended 30 September
2013, she discovers a debit error made on her BAS for
the quarter ended 31 March 2012.
Jiesi can only correct the debit error on a BAS that
she lodges within 18 months from the due date of the
March 2012 BAS. The due date for the March 2012 BAS
was 28 April 2012 so she has until 28 October 2013 to
correct the debit error.
Jiesi cannot correct the debit error on her BAS for the
quarter ended 30 September 2013 as she did not lodge
that BAS by 28 October 2013. She must correct the error
by revising the original BAS on which the error occurred –
penalties and the general interest charge may apply.
Debit error time limit
The debit error must be corrected on
a BAS that is lodged within 18 months
of the due date of the BAS in which the
error was made.
The debit error must be corrected on
a BAS that is lodged within 12 months
of the due date of the BAS in which the
error was made.
For more information about GST turnover, refer to
Goods and Services Tax Ruling GSTR 2001/7 Goods and
services tax: meaning of GST turnover, including the effect
of section 188-25 on projected GST turnover.
EXAMPLE 8: Error within the debit error time limit
EX Pty Ltd have a current GST turnover of $18 million and
lodge their BAS monthly. While preparing its July 2013 BAS,
EX Pty Ltd discovers a debit error of $5,000 on the BAS
they lodged for June 2012.
EX Pty Ltd can only correct the error on a BAS lodged
within 18 months of the due date of the BAS in which
the error was made. The due date for lodging the June
BAS was 21 July 2012. 18 months from that date is
21 January 2014.
8
EXAMPLE 9: Debit error is outside the debit error
time limit
Debit error value limits
You can correct a debit error on your current BAS if the net
sum of the debit errors is within the debit error value limit that
corresponds with your current GST turnover in the table below:
TABLE 3: Debit error value limits
Current GST turnover
Debit error value limit
Less than $20m
Less than $10,000
$20m to less than $100m
Less than $20,000
$100m to less than $500m
Less than $40,000
$500m to less than $1b
Less than $80,000
$1b or more
Less than $450,000
The net sum of the debit errors is the sum of one
or more debit errors less the sum of any credit errors that
results in an overall debit error. You can offset your credit
errors against your debit errors for the purposes of working
out whether you fall within the relevant debit error value limit.
Fuel tax credits – making adjustments and correcting errors
Errors
Different guidelines apply for single and multiple errors:
■■ If you have a single debit error to correct on your current
BAS, you can correct that error if it is within the relevant value
limit – if the error exceeds the value limit you will need to
revise the original BAS in which the error was made.
■■ If you have multiple debit errors to correct on your current
BAS, you can correct the net sum of the debit errors up to
the relevant debit error value limit – if the net sum exceeds the
debit error, you will need to revise the original BAS on which
the debit errors were made for the amounts that exceed the
debit error value limit.
■■ If you have multiple debit and credit errors to correct on
your current BAS, you can correct the net sum of the debit
errors up to the relevant value limit – you will need to revise
the original BAS on which the debit errors were made for the
amounts exceeding the debit error value limit.
EXAMPLE 10: Net sum of debit errors exceeds the debit
error value limit
Tim’s Mining has a current GST turnover of $5 million and
lodges its BAS quarterly. In August 2013, Tim’s Mining does
an end-of-year review and identifies two fuel tax credit debit
errors made in the previous year:
■■ a debit error of $7,000 that occurred in the BAS for the
quarter ended 30 September 2012
■■ a second debit error of $5,000 that also occurred in the
BAS for the quarter ended 30 September 2013.
The net sum of the debit errors is $12,000 ($7,000 +
$5,000), which exceeds the debit error value limit for Tim’s
Mining of $10,000. Tim’s Mining can only correct the debit
errors up to $10,000 in its current BAS.
Tim’s Mining decides to correct the first error of $7,000 and
$3,000 (out of the $5,000) of the second error (assuming
all other conditions for correcting a debit error are met).
To do this, it includes $10,000 at label 7C (Fuel tax credit
over claim) on its current BAS.
Tim’s Mining must then correct the balance of $2,000 of
the second error by revising the original BAS in which the
error was made, that is, the BAS for the quarter ended
30 September 2012.
Alternatively, Tim’s Mining may choose to correct one or
both errors in the BAS for the quarter ended 30 September
2012 to decrease its fuel tax credit entitlement by $12,000.
This could affect any penalties and general interest charges
(GIC) that may apply.
Fuel tax credits – making adjustments and correcting errors
EXAMPLE 11: Net sum of debit errors is within the debit
error value limit
Joan’s Earthmoving lodges their BAS quarterly and has
a current GST turnover of $10 million. On 11 October
2015, while preparing the BAS for the quarter ended
30 September 2015, Joan’s Earthmoving discovers the
following errors:
Summary of Joan’s Earthmoving errors
Tax period
ending
Error
December
2012
Clerical
transcription
error
September
2014
Over claimed
fuel tax credits
December
2014
Clerical
transcription
error
March
2015
Did not include
decreasing
fuel tax credit
adjustment
Total
Debit
error
Credit
error
$10,000
$13,000
$5,000
$6,000
$19,000
$15,000
Joan’s Earthmoving wants to correct these errors in
their quarterly BAS ended 30 September 2015. Joan’s
Earthmoving determines they can correct the credit errors
in this BAS as they are both within the four year period
of review.
Joan’s Earthmoving determines their debit errors meet all
the required conditions. They also need to work out whether
each debit error, as part of the net sum of debit errors, is
within the debit error value limit of $10,000.
The net sum of the debit errors is $4,000 (that is, $19,000
– $15,000), which is below the relevant debit error value
limit ($10,000). Joan’s Earthmoving can also correct both of
the debit errors by taking them into account on the BAS for
the quarter ended 30 September 2015 (that is, the errors
relating to the over-claimed fuel tax credits of $13,000 and
the increasing adjustment of $6,000).
9
WHEN AN ERROR CANNOT
BE CORRECTED ON YOUR
CURRENT BAS
Debit error value limits for GST groups, branches
and joint ventures
The debit error value limits apply to the entity that lodges the
BAS and is entitled to claim fuel tax credits. That is, it applies
to the representative member of the GST group (rather than
each individual member) and the GST joint operator of a
GST joint venture.
HOW TO MAKE CORRECTIONS ON YOUR
CURRENT BAS
If you meet the rules for correcting errors you can correct an
error in your current BAS. To correct an error, complete the
appropriate boxes on the fuel tax credits section of your BAS.
If the net sum of the errors results in:
■■ an increase in your fuel tax credit entitlement, include the
dollar amount of the error at label 7D (Fuel tax credit) on your
current BAS
■■ a decrease in your fuel tax credit entitlement, include the
dollar amount at label 7C (Fuel tax credit over claim) on your
current BAS.
You cannot correct a credit or debit error on your current BAS
if any of the following occurs:
■■ The error relates to a matter that is subject to a compliance
activity or was made in a tax period that is subject to a
compliance activity.
■■ You have corrected the error in another reporting period.
■■ The debit error was due to a recklessness or intentional
disregard of the law.
IF YOU ARE SUBJECT TO COMPLIANCE ACTIVITY
A compliance activity is an examination of your fuel tax
credit affairs undertaken by us and includes reviews, audits,
verification checks, record-keeping reviews/audits and
similar activities.
If you receive advice from us by phone or in writing about our
intention to conduct a compliance activity, you cannot correct
an error that is the subject matter of that compliance activity
or errors arising in a reporting period that is subject to the
compliance activity. If you find such errors, it is in your best
interest to voluntarily disclose the errors. If you tell us about
your error, it will be taken into account when we consider the
application of a penalty.
A compliance activity is completed when you receive a notice of
assessment or notice of amended assessment, or when we tell
you that the examination has been finalised.
EXAMPLE 12: Fuel tax credit error cannot be corrected
due to compliance activity
In June 2013, we notify Grote Construction that we are
conducting a review of its past fuel tax credit claims for
the company’s on-road activities. In preparation, Grote
Construction undertakes its own review of both its on-road
and off-road activities. Grote Construction discovers that it
made a transposition error when calculating the amount of
fuel acquired for its on-road activities. As this error relates
to the matter we are reviewing, Grote Construction cannot
correct the error in their current BAS. They must correct the
error in the original BAS where the error was made.
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Fuel tax credits – making adjustments and correcting errors
When an error cannot be corrected on your current BAS
EXAMPLE 13: Fuel tax credit error can be corrected
despite compliance activity
In March 2013, we notify Broome Agricultural that we
are conducting a general review of its fuel tax affairs for
each of the monthly tax periods ending 31 January 2012
to 31 January 2013. Broome Agricultural also conducts
its own review and discovers an error made in working
out its fuel tax credit entitlement for the tax period ending
31 December 2011. As the error is made in an earlier tax
period and is not subject to compliance activity (and is
not related to a matter that is subject to review), Broome
Agricultural can correct the error in their current BAS, if they
meet the other conditions for correcting the error specified
in this guide.
IF YOU HAVE CORRECTED THE ERROR IN
ANOTHER TAX PERIOD
EXAMPLE 14: intentional disregard of the law
Bracely Co is facing a cash-flow problem and deliberately
over claimed its fuel tax credit entitlement by $10,000 when
lodging its monthly BAS for November 2012.
As the debit error (over claiming fuel tax credits) resulted
from Bracely Co intentionally disregarding fuel tax credit
law, they cannot correct the error on their current BAS.
Bracely Co must correct the debit error on the original
November 2012 BAS – penalties and general interest
charges (GIC) may apply.
For more information about what is recklessness
or intentional disregard of the law, refer to Miscellaneous
Taxation Ruling MT 2008/1 Penalty relating to statements:
meaning of reasonable care, recklessness and intentional
disregard.
You cannot correct a fuel tax credit error more than once.
For example, if you revise the original BAS in which the error
was made, or if you have already corrected the error in another
tax period, you cannot then correct the error in any other BAS.
This includes if you partially correct a debit error in your current
BAS because the relevant debit error value limit was exceeded.
You cannot correct the amount that exceeded the debit
error value limit in a subsequent BAS. You should correct the
remaining debit error in the original BAS.
For more information about how the debit error value limit
works, see ‘Debit error value limits’ on page 8.
RECKLESSNESS AND INTENTIONAL DISREGARD
OF THE LAW
You cannot correct a debit error if the error is due to
recklessness or intentional disregard of the fuel tax law.
Recklessness is behaviour that falls significantly short of the
standard of care expected of a reasonable person in the same
circumstances. It is gross carelessness.
Intentional disregard of the law is something more than reckless
disregard of, or indifference to, a tax law. The intention is a
critical element. That is, a person must have understood the
effect of the law and how it operates and makes a deliberate
choice to ignore the law.
Fuel tax credits – making adjustments and correcting errors
11
RECORD KEEPING
You should keep records detailing the nature and extent of any
change for five years if you:
■■ make an adjustment
■■ correct an error
■■ claim an amount you failed to claim on an earlier BAS.
Records should include date, type and quantity of fuel acquired
and the activities each fuel was used for.
For more information about record keeping for fuel
tax credits, refer to Fuel tax credits – keeping records and
calculating eligible quantities (QC 18683).
SELF-ASSESSMENT
PENALTIES AND GENERAL
INTEREST CHARGES
You have an obligation to comply with tax laws and you may be
liable to pay a penalty and the general interest charge (GIC) in
either of the following circumstances:
■■ you are paid an amount of fuel tax credits that you are not
entitled to
■■ you do not adjust your fuel tax credit claims when you
become aware an adjustment is required.
You will not incur penalties or GIC if you:
■■ adjust fuel tax credit claims in your current BAS, when you
becomes aware of them
■■ correct errors to your fuel tax credit claims in your current BAS
in line with the conditions in this guide. Refer to FTE 2013/1
Fuel tax: correcting fuel tax credit errors determination 2013.
You can claim the GIC as an income tax deduction.
Self-assessment for indirect taxes (including fuel tax credits)
started on 1 July 2012. When you lodge a BAS for tax periods
that start on or after that date, you will still include the dollar
amounts of fuel tax credit and fuel tax credit adjustments for
the tax period. You will also include your GST payable, input
tax credits and other amounts as required.
The Commissioner is taken to have made an assessment of
your net credit or liability (known as your net amount or net
fuel amount) based on the amounts you include on your BAS
on the day you lodge. Your BAS is treated as being a notice
of assessment signed by the Commissioner and issued on
the day it is given to us.
For more information about self-assessment, refer to
Self-assessment for indirect taxes – overview (QC 25881).
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Fuel tax credits – making adjustments and correcting errors
MORE INFORMATION
For more information about fuel tax credits, refer to:
■■ Fuel tax credits for business (QC 18875)
■■ Fuel tax credits calculation worksheet (QC 18871)
■■ Fuel tax credits – keeping records and calculating eligible
quantities (QC 18683)
■■ Fuel tax credits and GST instalments (QC 21305)
■■ Fuel tax credits – how to complete your business activity
statement (QC 18918)
■■ Fuel tax credits – correction of credits relating to the road user
charge for certain fuel uses in heavy vehicles (QC 26770).
You can access these publications on our website at ato.gov.au
by searching for the title or the QC number. You can also obtain
copies of some of these publications by:
■■ visiting ato.gov.au/onlineordering
■■ phoning our operator-assisted publications ordering service
on 1300 720 092 between 8.00am and 6.00pm, Monday
to Friday – this service is not available on weekends or
public holidays
■■ phoning our automated publication ordering service any
time on
–– 13 72 26 if you have an ABN
–– 13 28 65 if you don’t have an ABN.
You must know the name of the publication to use this service.
The Fuel tax credit eligibility tool (QC 21085) can help you to
work out your eligibility for fuel tax credits and the rate at which
you can claim.
The Fuel tax credit calculator (QC 18866) can help you work out
your fuel tax credit entitlements as well as adjustments.
You can also:
■■ visit ato.gov.au/fuelschemes
■■ phone 13 28 66 between 8.00am and 6.00pm,
Monday to Friday
■■ write to us at
Australian Taxation Office
PO Box 3001
PENRITH NSW 2740