Posted on 12/4/2022
The 2022-23 Federal Budget announcement provided some temporary measures designed to assist and support the SME business sector. Neil Oakes, Director, Tax Consulting breaks down the key incentives below.
This useful measure will enable eligible businesses to reap the benefits in the 2024 financial year when the 2023 taxation returns are lodged.
As with all measures, there are always a few considerations that businesses need to be aware of when looking to take full advantage:
This is another welcomed measure that will enable eligible businesses to reap the benefits in the 2024 financial year when their 2023 taxation returns are lodged. Once again, this measure comes with a few considerations that businesses need to be aware of when looking to take advantage of this measure:
If you intend on taking advantage of either of these two measures, please contact your Perks Adviser to discuss whether or not your PAYG instalments can be varied in order to get the benefit earlier.
The 2022-23 Federal Budget revealed a halving of the fuel excise, starting from 30th March 2022, for a 6-month period.
Whilst this is welcome news for fuel users, it relies on the fuel retailers passing on the savings at the bowser.
It is also important to understand that as a general rule, businesses are able to claim Fuel Tax Credits (FTC) for the excise that is included in the price of fuel if the fuel is used in:
This credit will reduce relative to the reduction in excise for the next 6 months.
Heavy vehicles travelling on public roads have their fuel tax credit reduced by the Road User Charge (RUC). This means that not all fuel excise is refunded for heavy vehicles travelling on public roads under the FTC regime.
The Government is not changing the existing RUC arrangements for heavy vehicles travelling on public roads, but the temporary reduction in fuel excise will provide a net benefit for heavy vehicle operators of 4.3 cents per litre from 30 March 2022, compared to current settings. This is because the RUC is currently 26.4 cents per litre of fuel used and, from 30 March 2022, the excise paid by heavy vehicles will be 22.1 cents per litre, which is less than the RUC. Therefore, the FTC for heavy vehicles on public roads will reduce to nil.
Operators of heavy vehicles travelling on public roads will therefore have to ensure that they update their processes for the next 6 months to ensure that they are not claiming any FTCs unless the use of that vehicle qualifies for a refund of the RUC.
Providing tax consulting advice to small, medium and large enterprises, with specific focus in the aged-care and property industries.
Brian specialises in providing high level taxation advice. Tax consulting across corporate tax, capital gains tax and international tax, to ATO product and class rulings for managed investment schemes.
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