PCG 2019/2: Fuel tax credits - practical compliance methods for farmers in disaster affected areas
Document type: Final PCG
Status: Current
Date of issue: 22 March 2019

1. In meeting their fuel tax credit obligations an entity must: 2. These requirements can result in an additional compliance burden for entities in the agricultural industry when affected by natural disasters. To alleviate some of the burden, this Guideline provides some acceptable, practical compliance methods to assist these claimants in meeting their obligations.

Scope: 4. This Guideline applies to an entity that has: 5. The criteria in paragraph 4(a) of this Guideline determines who is an 'affected claimant' for the purposes of applying the compliance methods outlined in this Guideline. 6. This Guideline does not apply where the disentitlement rules of Subdivision 41 B of the FTA apply to the taxable fuels and, in particular, to taxable fuel acquired for use: What are the accepted methods? 7. The accepted methods set out: 8. An affected claimant entity may choose to use one or both of these methods. Method 1 - working out litres of taxable fuel acquired in the tax period 9. This method allows an affected claimant entity to work out the number of litres of fuel acquired using the following formula: Litres acquired in the tax period = Total $ / Average GST-inclusive price of fuel Method 2 - determining the day on which all taxable fuel is taken to be acquired in the tax period 10. Where there is a change in the rate of fuel tax credit in a tax period because of indexation, it will be accepted that all the fuel was acquired on the last day of the tax period. 11. The fuel tax credit rate for all the taxable fuel acquired during the tax period in Appendix 1 of this Guideline will then be the one rate. [1]




Appendix 1: Tax periods and postcodes applicable 12. For all taxable fuel acquired for use in carrying on your enterprise in an affected postcode during the tax periods, see the lodgment and payment deferral information for natural disasters . 13. The affected claimant entities are involved in cultivation or gathering in of horticulture, grains and crops and also the breeding and rearing of livestock and other farm animals. The affected ANZSIC codes are Subdivision A - 01 Agriculture (codes 011 to 019) listed below. © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). Not previously issued as a draft

Fuel tax credits - practical compliance methods for farmers in disaster affected areas: This Practical Compliance Guideline sets out a practical administration approach to assist taxpayers in complying with relevant tax laws. Provided you follow this Guideline in good faith, the Commissioner will administer the law in accordance with this approach.

What this Guideline is about | Which entities are covered by this Guideline? | Date of effect: 3. This Guideline applies to tax periods for which an activity statement lodgment and payment deferral has been granted due to a natural disaster. | Total $ means the total dollar spend on taxable fuel during the tax period. | Average GST-inclusive price of fuel for the tax period is the average fuel price for the relevant fuel type in your area of operation as shown on the Australian Institute of Petroleum (State and National prices) website ( aip.com.au/pricing/pump-prices ) | Commissioner of Taxation 22 March 2019 | Nursery and Floriculture Production | Mushroom and Vegetable Growing | Fruit and Tree Nut Growing | Sheep, Beef Cattle and Grain Farming | Other Crop Growing, for example sugar cane, cotton | Other Livestock Farming, for example horse, pig, beekeeping

Legislative references: FTA 2006 FTA 2006 41-5 FTA 2006 SDiv 41-B FTA 2006 Div 65
Other references: aip.com.au/pricing/pump prices Fuel tax credit calculator