Carbon tax repeal to benefit off-road truck use

Following the repeal of the carbon tax, trucking operators who use fuel for off-road applications can now claim more in fuel tax credits

The Australian Trucking Association (ATA) is reminding trucking businesses that fuel used for off-road purposes, including road construction, quarrying or landscaping, now attracts a higher rate of fuel tax credits following the recent repeal of the carbon tax.

"Previously, operators could claim 31.285 cents per litre in fuel tax credits for diesel used off-road," states the ATA.

"Following the repeal of the carbon tax this has changed to 38.143 cents per litre, an increase of 6.858 cents per litre."

The change has been backdated to July 1, 2014.

The ATA says it and its members lobbied hard to ensure the carbon tax was never applied to heavy vehicles for on-road use. As such, the rate of road tax credits applied to fuel for on-road usage remains unchanged.

Meanwhile the Australian Competition and Consumer Commission (ACCC) has warned that all businesses who supply regulated goods must pass on the full cost savings of the carbon tax repeal, or face stiff financial penalties.

"Businesses that supply regulated goods – electricity, natural gas, synthetic greenhouse gases (typically refrigerant gases) or synthetic greenhouse gas equipment (such as refrigerators and air-conditioners) – will be required to pass through all of the cost savings, direct and indirect, that are attributable to the carbon tax repeal," states an ACCC media release.

Businesses found in breach of this will be fined up to $1.1 million per contravention and individuals can be fined up to $220,000 per contravention.

According to the ACCC's Chairman, Rod Sims, the government watchdog will be monitoring the business sector closely.

"The ACCC will be keeping a close eye on prices to make sure that all cost savings go to consumers," he said.

"If suppliers of regulated goods put their prices up due to the carbon tax, these prices must similarly come down on repeal."

The ACCC says that any business or individual concerned that a supplier may not have passed on the full saving should contact that supplier first to discuss the matter, before contacting the ACCC. For more information visit www.accc.gov.au or call the ACCC Infocentre on 1300 302 502.

Carbon tax repeal to benefit off-road truck use

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