Eligibility for claims
Scenario:
I operate a marine mechanics business. I have purchased a boat which is used to take divers around to different locations. The boat consumes petrol, which is an eligible fuel for fuel tax credits.
- Would I be entitled to claim fuel tax credits?
- If I am eligible for fuel tax credits, how far back can I backdate the registration?
- If an accountant could backdate the registration, what would be the most reliable way to estimate litres of fuel used? Would the accountant be able to look at the total fuel expense for the past financial years and estimate litres based on that?
Explanation:
As the boat is used in your business or enterprise and not for private purposes, Fuel Tax credits will be available (Fuel Tax 2006 (Cth) s 41-5(1)).
The registration can be backdated as far back as 1 July 2016 (Fuel Tax 2006 (Cth) s1-10; GST Act Div 25, in particular s25-10 and 25-15). However, in the case that you decide to backdate the registration too far back, care should be taken since there are penalties for the late lodgment of BASs