Once again Labor has chosen to run a misleading scare campaign rather than support Australian businesses in the national interest.
In a statement today, Labor’s Joel Fitzgibbon claimed that ‘tens of thousands’ of businesses would face cash flow difficulties by moving to claim fuel tax credits via their BAS statements.
The Government has already announced a two year transition period to help businesses align their business practices so as to claim their fuel tax credits via the BAS.
Furthermore, the fact is that under the current Energy Grants (Credits) scheme 85 per cent of claimants lodge claims on a quarterly or less frequent basis.
The Government’s fuel tax Bills will lower compliance costs and cut $1.5 billion in fuel tax from eligible businesses and individuals across Australia.
These facts combined dissolve Labor’s paper-thin scare campaign.
The bottom line is the introduction of the new fuel tax credit system is good news for Australian business.
BACKGROUND:
A SIMPLER SYSTEM OF FUEL RELIEF
- From 1 July 2006, all fuels used in commercial and household electricity generation and fuels used for heating will be effectively free of fuel tax.
- From 1 July 2006, all fuels, including petrol, used on-road in vehicles with a GVM of 4.5 tonnes or more will be eligible for fuel tax credit equal to the difference between the fuel tax rate and the road user charge.
- All fuels used off-road for all business purposes will become free of fuel tax over time.
- The claiming of fuel tax credits via the BAS will simplify and reduce business interactions with the Australian Taxation Office, as businesses will have a single point of contact and the necessity of separate claim forms will be removed.
INDUSTRY RESPONSE
Australian Chamber of Commerce and Industry (ACCI):
“The Fuel Tax Bill 2006 contains many very beneficial changes for business…, the expansion of the off-road and on-road grants scheme and the changes to claim systems will be beneficial for a lot of businesses.” Mr Michael Potter, ACCI presentation to Senate Committee, 05/06/06.
Australian Trucking Association (ATA):
“Today’s announcement of a two year transition period for fuel tax credit claims from 1 July 2006 is a major win for small trucking businesses across Australia… this is a sensible outcome for all.” ATA press release 01/06/06
National Farmers Federation (NFF):
“The National Farmers Federation welcomes the cash-flow certainty and greater flexibility the Federal Government’s interim changes to the fuel tax credit system will give farmers...the two year phase in will provide farm businesses with the opportunity to adjust their fuel purchasing cycle to better align with their BAS cycle…” NFF press release 01/06/06