26 May 06 Fuel Tax CreditsThe second matter to impact on tax agents' 2006/07 workloads discussed at the ATPF meeting on Friday 19 May 2006 was the new fuel tax credit system. Under the old scheme only approximately 189,000 taxpayers were eligible and very few participants used tax agents. However, as the new scheme has wider eligibility, numbers eligible are expected to increase in the short term to around 290,000 taxpayers and potentially to 695,000 taxpayers in 2008.
As all fuel tax credits will now be claimed via the quarterly BAS, this new system will have a significant impact on tax agents. Clients will need to consider the cash flow implications and the implications on their current activity statement lodgment (ie remain on annual or twice yearly or go quarterly or monthly). There will be the addition of two fuel tax credit labels, one for credits and one for debit adjustments. These new labels will only be included on the BASs for clients who are registered for the fuel tax credit.