If you are in the Transport, Construction, Mining & Gas, Local Government, Agriculture, Forestry, Civil industries, or in a business that claims or should be claiming FTC, you need to keep reading.
Teletrac Navman – Australia’s No 1 Fleet Management Company in Australia – is the only company that has both an ATO Class & Product ruling with regards to FTC.
And with this ATO ruling, if the Teletrac Navman solution determines you have been under claiming, you can apply for a 4 year retrospective refund. Some refunds for large fleets have been in excess of $500K.
What are FTC – a mechanism to recover fuel tax (excise) on fuel acquisitions.
The Woes of Manual FTC:
- Not claiming everything you are entitled to because you are too conservative with your claims.
- Claims using unsubstantiated methods.
- Can not measure on road/off road travel.
- Claims using averages instead of actuals.
- Difficulty to account for exact auxiliary use.
- Under claiming using sage harbour method.
- Inability to measure fuel usage in road construction and maintenance activities.
Remember, any audit undertaken by the ATO for FTC claims you can’t substantiate, you will need to pay back what you incorrectly claimed and you will likely incur large fines and penalties.
You can claim $508 for every 1,000 litres of fuel used for:
- Operating auxiliary equipment.
- Idling and travelling off public roads such as: Mine Sites and Access Roads; Oil and Gas Sites and Access Roads; Forestry Roads National Parks’ Roads; Construction Sites; Some Roads on Indigenous Lands Farms and Agricultural Properties; Supplier/Customer Yards; Warehouse/Depots; Distribution Centers; Some Port Roads (e.g.: Fremantle Terminal); Other Private Property.
As already mentioned, with a Teletrac Navman solution (in conjunction with its partner Fuel Tax Advisers using FTC Manager), you have the ability via the FTC legislation, to claim refunds for fuel already purchased over the last 4 years if the solution determines you have been under claiming. On going claims are now 100% accurate and based on per vehicle – not averaged out over the entire fleet. The current average 4 year retrospective refund based on 350 reviews over the last 4 years is approx. $2,200 per vehicle.
Any Teletrac Navman solution with regards to claiming FTC has full transparency with the ATO. You have accredited tax consultants with Teletrac Navman’s partner Fuel Tax Advisers for specialist support if required.
If you determine your own FTC Claims, you need to make sure your apportionment methodologies adhere to the requirements of the tax commissioner and are well documented.
So, what makes Teletrac Navman so special? It is supported by not one, but two ATO rulings.
- Teletrac Navman provides second by second high definition data via its fleet management system – not timed updates (10 sec, 30 secs) with an algorithm that fills in the blanks. This is real time data, rather than average percentages.
- Dual layered system – all public road networks have been mapped, plus you have the ability to use Geofences for additional accuracies.
- Every vehicle and asset captures live data that makes it possible to streamline and automate the claim process.
In other words, the ATO is very comfortable on how Teletrac Navman goes about collecting and the accuracy of its data in order to make a FTC claim.
FTC Manager is an electronic solution that reduces the enormous amount of paperwork needed to record and keep track of on road/off road usage.
You have the ability to operate the FTC Manager system yourself or outsource the entire FTC claims process to our FTC advisory partners. Minimise the risk of unsubstantiated claims. A solution with an ATO Class Ruling and an ATO Product Ruling will re-assure stakeholders that your claim is compliant and reduces the stress of an audit.
And let’s not leave out your auxiliary equipment such as tipping and pumping trailers, truck mounted loading cranes, water/fuel trucks, street sweepers, rubbish trucks.
Finally, to add some credibility to a Teletrac Navman solution, they are the preferred suppliers to Rio Tinto, BHP, NSW Government, Aldi, Toll, Kennards Hire, NBN Co and over 161 local councils throughout Australia.
Conclusion
If you would like to learn more how a Teletrac Navman FTC Manager solution can save you money and help with being compliant with regards to claiming FTC, please reach out.
Simon Bignell (Director – Sales)
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