Well worth claim­ing fuel re­bates on farm ac­tiv­ity

South Waikato News - - NEWS -

More cor­rectly named Fuel Ex­cise Duty Re­fund, claim­ing their petrol re­bates can be an easy source of ex­tra in­come for farm­ers.

Ex­cise duty is a tax on petrol which is used to main­tain our road­ing in­fra­struc­ture. So busi­nesses which use ve­hi­cles and equip­ment off- road are able to claim back the ex­cise duty.

The re­ally big items this ap­plies to is mo­tor­bikes and quads. But fuel used in chain­saws, petrol gen­er­a­tors and petrol trac­tors not used on the road also ap­plies.

The catch is that the fuel must be used for com­mer­cial use but not for trav­el­ling on the road. So fuel used in plea­sure boats or jet ski­is­doesn’t qual­ify.

Petrol which is used in mo­tor­bikes and quads can amount to a large quan­tity dur­ing a year and with a lit­tle time spent on fill­ing out the forms, the re­turn can be quite worth­while, es­pe­cially for a large op­er­a­tor.

Fuel types which this re­bate ap­plies to in­clude mo­tor spir­its, CNG and LPG; but does not in­clude diesel as the tax on diesel is paid through road user charges.

Ex­cise duty is cur­rently about 50 cents per litre for mo­tor spir­its.

If 2000 litres was used over the pe­riod of a year, this would to­tal over $1000 in re­funds. Think how many nights out for din­ner this could be.

Or how en­joy­able it would be to spend it on a week­end away!

To ap­ply for this re­fund, a form needs to be filled in quar­terly ( March 31, June 30, Septem­ber 30 and De­cem­ber 31) and sent to the NZ Trans­port Agency. If the cut-off dates for a quar­ter are missed, ap­pli­ca­tions can still be sent within two years but a 10 per cent penalty will ap­ply. De­tails of sup­plier, type of fuel, quan­tity and date of pur­chase must be in­cluded as well as the in­voices show­ing proof of pur­chase.

The NZ Trans­port Agency web­site at nzta. govt. nz has the re­quired forms MR70 and more in­for­ma­tion is con­tained on the Fact­sheet Ex­cise Duty. Al­ter­na­tively, printed copies of the form are avail­able from your near­est NZTA re­gional of­fice or by phon­ing the Trans­port Reg­istry Cen­tre.

Un­for­tu­nately, the main rea­son many farm­ers don’t ap­ply for this re­fund is that it in­volves yet an­other form fill­ing ex­er­cise!

If you pre­fer, your ac­coun­tant would be able to help with this. Ac­tu­ally at Coop­erAitken we com­plete many of these forms on a reg­u­lar ba­sis for our clients. So if you use a large amount of petrol on your farm which doesn’t travel on the road, con­sider claim­ing the Ex­cise Duty Re­fund.

If you run a large op­er­a­tion, you could be sur­prised how much it amounts to.

Re­ally it is money for jam!

CLAIM: Fuel Ex­cise Duty Re­fund.

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