Fuel tax credits

Question: A client runs a marine mechanics business and bought a boat for transporting divers. The boat uses petrol, which qualifies for fuel tax credits.

• Can he get fuel tax credits for the boat?
• If eligible, how far back can he backdate his registration?
• If the accountant helps with backdating, what's the best way to estimate fuel usage? Can they use past fuel expenses to estimate litres?

Answer: Since the boat is for business use, fuel tax credits are available (Fuel Tax 2006 (Cth) s 41-5(1)).

The registration can go back as far as July 1, 2016 (Fuel Tax 2006 (Cth) s1-10; GST Act Div 25, particularly s 25-10 and 25-15). However, there might be penalties for late BAS lodgment if the registration is backdated too far.

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