FUEL TAX CREDITS AND GREENHOUSE CHALLENGE PLUS MEMBERSHIP
Fuel tax credits were introduced on 1 July 2006 and the entitlement expands from 1 July 2008. This means even if you weren’t eligible before, you may be able to claim fuel tax credits for fuel you acquire, manufacture or import for use in your business activities from 1 July 2008. For more information go to www.ato.gov.au/businesses
Frequently asked questions
Question 1: Programme membership requires reporting of emissions. Is there a penalty for not signing up?
Answer: If your business plans to claim in excess of $3 million annually in fuel tax credits and is not a member of Greenhouse Challenge Plus, it will be unable to claim credits above $3 million.
Question 2: Is the programme only for diesel fuel emissions?
Answer: No. Greenhouse Challenge Plus agreements must contain an inventory of all the businesses emissions in Australia, and these emissions must be reported every year.
Question 3: How is membership confirmed?
Answer: The fuel tax credits are claimed through BAS submission to the Australian Taxation Office. The Australian Taxation Office will confirm with the Greenhouse Challenge Plus team that ABNs of claimants are covered by Greenhouse Challenge Plus agreements.
Question 4: My business is large with several ABNs and/or joint ventures. Does each entity have to become a separate member of the programme?
Answer: No. Contact the Department of the Environment, Water, Heritage and the Arts early to discuss the best way to structure your agreement.
Question 5: We are not ready to submit our application, and there are still three months left. What's the rush?
Answer: The Department of the Environment, Water, Heritage and the Arts advises businesses with all levels of experience and expertise to communicate with them early and regularly about their membership applications. Leaving it until the last minute may make it difficult to join so that you receive your tax credits on time!
Question 6: What happens if we sign up, but do not submit our report on time?
Answer: You have 6 months to submit your report after the end of the reporting period. If it is not submitted in this time, you will not be eligible to claim any fuel tax credits above $3 million until your annual progress report is completed, as it is a mandatory requirement of the programme.
Question 7: What assistance will I receive in developing my co-operative agreement?
Answer: We will provide you with the tools and templates you need to develop your co-operative agreement. The Department of the Environment, Water, Heritage and the Arts has an industry adviser with expertise in your industry should you require further assistance. Details on who the industry advisers are and how to contact them can be found on page 12.
Question 8: Do I have to maintain membership continuously if I don't reach the threshold every year?
Answer: No, you only need to be a member when you seek to claim any credits in excess of $3 million each financial year. However, the effort required to maintain an agreement is often less than that required to re-instate one in the future. In the interim, you would continue to benefit from managing and monitoring you emissions, and would be reaping the benefits of an improved bottom line through improved energy efficiencies.
Question 9: What does joining the programme cost?
Answer: Nothing beyond the time it takes to develop your co-operative agreement and meet the ongoing membership requirements. Many businesses find the savings they make by becoming more energy efficient far outweighs the time it takes to join and maintain membership.