Fuel Tax Credits (FTC) provide businesses with a credit for the fuel tax (excise or customs duty) which is 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 the BAS because it will automatically include the correct rates.

Note: You can still use a 'Manual' method of calculating the FTC if desired. This has not changed. 

To Automate FTC Calculation

Step 1: 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 OK.
  

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 fuel usage is a work-related expense.
• Repeat this step for each fuel account.
  

Step 7: 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 the 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