Claiming FTC for the Farming/Agriculture sector

Given most of the agriculture sector’s activities are carried out off-road on private property, many of the activities where fuel is used, such as in tractors and or for activities like drilling, fencing or maintenance are entitled to the maximum FTC claim rate. 

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But did you know that fuel used in both heavy and light vehicles travelling between sites, but off the main road network, can also be claimed at the highest FTC rate? 

According to the ATO, you can claim fuel tax credits for taxable fuel (for example, diesel, petrol or duty paid gaseous fuels) used in any agricultural activity if the purpose of your business is to obtain produce for sale (or it directly supports such a business), including:

• cultivating or gathering in crops
• cultivating the soil
• rearing livestock (see note 1)
• viticulture, horticulture, pasturage or apiculture
• transporting livestock other than on a public road
• hunting and trapping
• removing waste from an agricultural activity.

The following activities are also eligible if they are carried out on an agricultural property:

• drilling bores
• building or maintaining firebreaks
• fencing
• frost abatement
• controlling weeds, pests or disease
• building or maintaining sheds, pens, silos, silage pits, dams, water tanks, troughs, channels, irrigation systems and drainage systems
• planting and tending trees not intended for felling
• constructing earthworks, including dams, levee banks, windbreaks, contour banking and levelling or grading land
• conserving soil and water
• milking, shearing and mustering stock
• breeding animals for working the land, such as draught horses
• breeding animals for livestock activities, such as stock horses or working dogs
• baling hay on the agricultural property where the hay was cut (see note 3)
• service, maintenance and repairing business vehicles or equipment
• storing or packing produce
• preventing produce deterioration
• disposing of waste from an agricultural activity.

The following activities are also eligible for fuel tax credits at the full rate if they are carried out on, or adjacent to, an agricultural property:

• pumping and supplying water solely for use in agriculture
• building or maintaining firebreaks

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Calculating your FTC manually can be a long and arduous task that often relies on estimates or averages. But with EROAD’s Fuel Tax Credit Solution, which has achieved an Australian Tax Office (ATO) class ruling, you can seamlessly calculate the maximum FTC rebate you’re entitled to at the touch of a button using GPS data.

EROAD’s Fuel Tax Credit Solution can maximise your FTC claims by:

• Accurately capturing real-time on-road and off-road travel, idle and auxiliary equipment usage
• Providing better visibility and tracking of your fleet’s fuel usage
• Providing sophisticated GPS tracking to capture vital journey and activity data which is then feed directly into simple reports to accurately calculate your FTC entitlement
• Providing the ability to use geofencing to clearly define off-road areas
• Eliminating the admin time, paperwork and guesswork by calculating your FTC claims automatically for you
• Ensuring your business is more efficient by providing a range of other monitoring and reports to enhance efficiency, productivity and safety

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