There are two new methods for calculating eligible litres for claiming fuel tax credits.  They are:

• the alternative percentage use method, which would be suitable if a business has medium to large fleets of vehicle or equipment
• the average fuel consumption rate method, which can be used if a business keeps records of the hours their equipment is used.

Alternative percentage use method

The alternative percentage use method can be used for businesses where the eligible fuel use is consistent over time.  While this method can be used for any business with consistent eligible fuel usage, it is most suited for those that have medium to large fleets of vehicles or equipment.

Average fuel consumption rate

The average fuel consumption rate method can be used for businesses that keep records of the hours their equipment is used.  Businesses can simply work out their equipment’s eligible litres by multiplying its operating hours for an activity by its average hourly fuel consumption rate.  Your clients can either use the manufacturer’s guide for the consumption rate or keep records over a four week sample period of the operating times and actual fuel used to work out their average hourly fuel consumption rate.