The association says the campaigned fuel excise reduction won’t actually hit company pockets
The Australian Trucking Association (ATA) says the Federal government’s decision to change the fuel tax has caused confusion for the transport industry and raises complex issues for trucking businesses.
In last week’s budget the Federal government halved the fuel excise tax from 44 cents per litre to 22 cents.
While some organisations, such as the Victorian Transport Association (VTA), have praised the move, the ATA says it is a confusing solution presented to the transport industry.
“The effective reduction for trucking businesses is 4.3 cents per litre, not the headline figure of 22.1 cents per litre, because trucking businesses will not receive fuel tax credits for their on-road fuel use during the period of the reduction,” the ATA says.
According to the ATA, transport workers and owners will pay less tax at the pump under this change but won’t receive on-road fuel tax credits for the six months of the cut.
The ATA says fuel tax expert Chris Sant will present at Trucking Association 2022 on the details of how the Federal government’s fuel excise decision will impact certain trucking businesses.
This fuel tax in focus event will be held on Thursday May 5.
In the meantime, the ATA recommends transport businesses struggling with the fuel tax to talk to an accountant about the difference between the government’s announcement and the realities of the tax fuel cut for trucking businesses.
The ATA also suggests asking whether it is necessary to change the fuel levy formula and seek advice on managing cash flow.
Extracted in full form: ATA questions fuel tax confusion | News (fullyloaded.com.au)