Automatic Fuel Tax Credit Calculation.
Automatic Fuel Tax Credit Calculation
Cashbook automatically calculate my Fuel Tax Credits (FTC)
Fuel Tax Credits (FTC) provide business with a credit for the fuel tax (excise or customs duty) that's included in the price of fuel used in: machinery, plant, equipment and heavy vehicles.
FTC rates are now indexed twice a year - generally on 1 February and 1 August. These changes fall in the middle of a BAS, so Cashbook users will need to contend with 2 rates in some BAS periods.
Practical Systems has now devised a simple method for automatically calculating the FTC. It is an easy way to avoid mistakes when working out the fuel tax credit amount to claim on your BAS because it will automatically include the correct rates.
Practical Systems has now devised a simple method for automatically calculating the FTC. It is an easy way to avoid mistakes when working out the fuel tax credit amount to claim on your BAS because it will automatically include the correct rates.
Note: That you can still use a 'Manual' method of calculating the FTC if desired. This has not changed
Note: In Cashbook Plus, you can only use the 'Automatic' option for FTC calculation if your BAS Return Basis is set to 'Cash' - see the BAS Setup tab
To automate FTC calculation
If you need to claim Fuel Tax Credits in your next BAS, please follow the steps below:
Step 1. The main BAS window
- Click on the BAS icon on the main toolbar
Step 2. FTC window
- Click on the Fuel Tax Credit tab
Step 3. FTC settings
- Tick the Include in BAS check box.
- Tick the Calculation Type radio button, so it is set to 'Automatic'.
Step 4. Assign FTC accounts
- Click on New FTC Link button
- In the Select Fuel Tax Credit Accounts window, select Fuel account/s, by clicking on account to highlight (If you have more than one relevant account, click on the first account, hold down the Ctrl key and click on the other accounts)
- Click on the OK button
Step 5. Assign Rate Types
- Click in the Rate column, next to each fuel account, and select the applicable rebate rate type. (If unsure please contact your accountant or check the ATO website.)
- Repeat this step for each fuel account
Step 6. Assign Business Percentages
- Click on the Bus % column, next to each fuel account, and enter the business percentage. (If unsure please contact your accountant.)
- Business percentage is how much of fuel usage is a work-related expense.
- Repeat this step for each fuel account.
Step 7. Do the Calculations
- The Fuel Tax Credit will now be automatically calculated. You can now complete the rest of your BAS.
- Click on the Details button to view a Detailed Listing of Fuel Tax Credit transactions relating to your current BAS period. Cashbook will automatically use the relevant set of FTC rates, based on your fuel purchase transaction dates.
Step 8. Review FTC rates history
If you would like to see the rates history for Fuel Tax Credits, click on the GST > Fuel Tax Credit Rates History menu option.
Article ID 1172