Thousands of dollars in fuel tax credits often go by the wayside each year. With its ability to record vehicle movements, EROAD provides accurate documentation of how and where operators use fuel so that they can put the money recovered in rebates back into running a business.
At present many companies with vehicle fleets still employ legacy systems outside the latest hardware and software.
Independent supply chain businesses, not unlike many other family-owned enterprises, have often been slow to adopt many of the new approaches including integrating telematics which are increasingly having a positive impact on the management of key commercial interests.
Reinvesting returns is a critical part of the financial process for many businesses that deliver freight using heavy vehicles.
The process of claiming fuel tax credits (FTC) is routine practice for fleets looking to maximise their outlay given fuel, outside of their moveable assets, is the heaviest burden on their costs.
Relying on estimates or assumptions, according to transport technology specialist, EROAD, is a key reason many businesses under-claim on fuel tax credits.
The EROAD Fuel Tax Credit Solution automates the measurement and calculation of FTC entitlements for fuel usage off-road, during and across auxiliary equipment like refrigeration units and hydraulic machinery – all of which are currently applicable to the higher FTC rate.
The off-road rate of 41.8 cents per litre in accordance with current rates can be claimed by light vehicles if they operate in off-road areas.
When compared to standard on-road rates, a savings of $25.8 per 100 litres of fuel would make a big difference to the bottom line of fleets, no matter the size, looking to grow – subject to the fuel type in use.
A standard FTC rebate rate for heavy vehicles 4.5 tonnes and over travelling on public roads is 16.0 cents per litre. The majority of claims by commercial vehicles are made at this rate.
EROAD uses a GPS system to track fleet movements and draws on real-time analytics to calculate claims for upmost transparency and accuracy.
“A more accurate claim ensures that your business isn’t missing out on increased rebates it’s entitled to, while providing you with the evidence and reassurance you are making a transparent claim,” says Tony Warwood, General Manager ANZ.
“A major gap for some organisations when claiming fuel tax credits is the underestimation of claims due to the lack of evidence. Many organisations underclaim their entitled rebate in fear of being unable to validate theirs with the Australian Taxation Office.”
As the telematics provided by EROAD allows for the creation of a geofence around a specific work area, operators can highlight sites that are temporary off-road areas even though they may not be commonly described as such. Think of construction spaces near public roads.
Smart telematics technology can reduce tax risks by providing evidence to claim the maximum amount a business is entitled to.
It’s a vast improvement, according to EROAD, on the standard method of calculating FTC by supplying fuel receipts to an accountant, not in the least as it helps save significant time in administration.
EROAD states its Fuel Tax Credit Solution enables recovery of under-claimed FTC retrospectively for up to four years and that it can claim off-road FTC for light vehicles and claim 2.5 times the standard on-road FTC rebate rates.
Tony says “Approved by the Australian Tax Office, EROAD’s Fuel Tax Credit Solution can unlock under-claimed historical FTC rebates in the previous four years by demonstrating a consistent business pattern of use”