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Fuel Tax Credit (FTC) and BAS

What is Fuel Tax Credit (FTC)?

Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) that's included in the price of fuel used in:

  • machinery
  • plant
  • equipment
  • heavy vehicles
  • light vehicles travelling off public roads or on private roads.

The amount depends on when you acquire the fuel, what fuel you use and the activity you use it in. Fuel tax credits rates also change regularly so it's important to check the rates each time you do your business activity statement (BAS).

Unlike the other taxes reported on BAS, Fuel Tax Credits are refundable amounts, and depending on the business may even result in a refund from the ATO for fuel taxes paid.

QuickBooks does NOT support FTC calculation natively at this time, and therefore FTC figures have to be calculated manually or via another solution.

For more information about Fuel Tax Credits, please consult a tax professional and explore the ATO website links below:

https://www.ato.gov.au/business/fuel-schemes/fuel-tax-credits---business/
https://www.ato.gov.au/business/fuel-schemes/fuel-tax-credits---business/claiming/completing-your-business-activity-statement/​

 

Recording FTC in QuickBooks

When FTC is enabled in GST settings, QuickBooks will include FTC fields inside your BAS filing flow. Once your BAS has been marked as lodged, a Fuel Tax Income account will be created in the Chart of Accounts to track all FTC amounts.

To claim a Fuel Tax Credit back from the ATO, input the amount under Fuel tax credit amount during the Other taxes filing stage of your BAS.

Tick the I need to include a credit over claim if you need to pay back a Fuel Tax Credit previously taken.

When your activity statement is lodged, QuickBooks will automatically write a journal entry against the Fuel Tax Income account and the ATO Clearing account.

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