Q: A client who operates a marine mechanics business. He has purchased a boat that uses to move divers around to different locations. The boat runs off petrol, which is an eligible fuel for fuel tax credits.
- Would he be available for duel tax credits for a boat?
- If he is eligible for fuel tax credits, how far back can he backdate his registration?
- If accountant could backdate his registration, what would be the most reliable way to estimate litres of fuel used? Could the accountant look at his total fuel expense for the past financial years and estimate litres based on that?
A: As the boat is used in your client’s business or enterprise and not for private purposes, Fuel Tax credits will be available (Fuel Tax 2006 (Cth) s 41-5(1)).
The client’s registration can be backdated as far back as July 1, 2016 (Fuel Tax 2006 (Cth) s1-10; GST Act Div 25, in particular s 25-10 and 25-15). However, care should be taken since there are penalties for the late lodgment of BASs, if the client decides to backdate their registration too far back