You can use the simplified method for calculating fuel used in heavy vehicles with auxiliary equipment to claim any fuel tax credit amount, including claims above $10,000 per year. This simplified method allows you to claim a set percentage of the fuel used to power auxiliary equipment in a heavy vehicle.
This simplifies your calculation and covers fuel used to power the auxiliary equipment and fuel used when the vehicle is off public roads. You won't need to do complex calculations because you apply the set percentage to your vehicle type and auxiliary equipment.
You can’t use:
- both the simplified method for calculating fuel used in heavy vehicles with auxiliary equipment and the basic method for heavy vehicles together, or
- the simplified method for calculating fuel used in heavy vehicles with auxiliary equipment and another method. This is because the simplified method covers fuel used to power the auxiliary equipment, as well as fuel used when the vehicle is not on a public road.
You can’t use the ATO Fuel tax credit calculator with this simplified method.
Instead, it must be calculated manually in 6 steps as follows:
Step 1: Determine the total amount of fuel acquired for the vehicle for the period.
Step 2: Use the heavy vehicle with auxiliary equipment table (below) to find your vehicle type and the type of auxiliary equipment to which this method applies and the percentage rate.
Heavy vehicle with auxiliary equipment table:
|
Vehicle |
Fuel use percentage |
|---|---|
|
Concrete truck: includes the mixing barrel and all mechanisms used in loading, unloading and transporting the concrete. |
30% |
|
Refrigerated vehicle: refers to all the refrigeration units of a vehicle transporting temperature-sensitive goods. Includes fuel sourced from a separate or the same fuel tank as that which fuels the main engine. |
10% |
|
Waste management collection: equipment of a vehicle used to lift the bin to deposit contents into the vehicle's hopper and to compact the contents of the hopper. Includes all configurations of bin-lifting equipment. Does not include pumping in relation to waste management (refer below to 'Vehicles with specialised auxiliary equipment'). |
15% |
|
Vehicles with specialised auxiliary equipment: refers only to the following specialised equipment:
The apportionment of 5% is only applied once even if you have used fuel to power more than one type of specialised equipment. |
5% |
|
Long haul vehicles with sleeper cabins: Air-conditioner units that moderate the temperature of the vehicle’s sleeping compartment when the driver is on a sleeping break during a long-haul trip. Note: The vehicle must use fuel to power the air conditioner during the sleeping break of a long-haul trip. That is, you cannot claim if your air conditioner unit is powered by a battery. You also cannot claim this percentage if the vehicle does not undertake long-haul trips and the driver is using fuel to power the sleeping compartment when on a sleeping break. |
5% |
Generally, a vehicle only qualifies under one category, except for a long haul refrigerated vehicle with an air-conditioner unit of a sleeper cabin.
If your vehicle isn’t in this table, you need to consider one of the other methods to work out your fuel use.
Step 3: Multiply the amount of fuel for use in the vehicle by the percentage in the table (above).
Step 4: Multiply the result of step 3 by the ‘all other business uses’ fuel tax credit rate.
Step 5: Multiply the remaining fuel by the used in heavy vehicles for travelling on public roads rate.
Step 6: Add the results from steps 4 and 5 together, to work out the fuel tax credit claim.
Example
