You use the percentage use method to determine a reliable percentage of eligible fuel usage for a sample period, and then apply this over a number of BAS periods.

To use this method, you must keep detailed records of your taxable fuel usage during the sample period of your choice. You must be able to show that your fuel usage in the sample period accurately reflects your standard business activities.

If the ratio of eligible to non-eligible fuel you use remains consistent over BAS periods, you can use a percentage to calculate the percentage of fuel used in eligible uses.

You can use the percentage use method for one or more fuel types. You need to do a sample period for each type of fuel.

If you use the same fuel for activities with different fuel tax credit rates, you can't use a single percentage for that fuel type. You'll need to calculate and monitor percentages for each fuel or activity with a different fuel tax credit rate.

Once you've established a reliable use percentage, you can apply this to fuel you acquire, to work out the fuel tax credits you can claim. You must review your sample percentage regularly particularly if your business operations change in a way that substantially affects how much eligible fuel you use in a financial year.

By using this method, you don’t need to keep notebooks or detailed records of the fuel you have used, other than in the sample period.

However, you still need to keep:

• records of your fuel purchases
• evidence your activities are eligible for fuel tax credits and that those activities have been undertaken during the period
• evidence that the percentage applied remains relevant to the current business operations
• evidence that the fuel has been used in carrying on your business
• details of any fuel that is lost, stolen, or otherwise disposed of.

You should regularly review the percentages being applied to ensure they remain current to your business operations. For example, if your circumstances change due to changes in contracts or in your vehicle fleet, you need to review the percentages.

Example