Heavy vehicles pay a higher motor tax than lighter counterparts. One reason for such is the wear and tear they cause on the roads. Thankfully, the Australian government recognises the different types of heavy vehicles that ply the streets.
That led to the reallocation of motor tax for better representation and cost-sharing, industry experts from fuel storage manufacturer Durotank reveal. Moreover, there is the fuel tax credit that gives operators of heavy diesel vehicles rebates for going green.
Fuel Tax Credit: How to Qualify
There are four ways heavy vehicles can qualify for a fuel tax credit. One is to use a vehicle manufactured after January 1, 1996. Vehicles with a retrofitted engine manufactured on or after January 1, 2016. These vehicles have onboard self-diagnostics and reporting capabilities.
Another way is to register a vehicle in an accredited audited maintenance program. Vehicles that are part of this program have met “certain requirements related to emissions performance and auditing and must be accredited by the Transport Secretary,” according to the Department of Infrastructure and Regional Development.
Vehicles that meet the “DT80 Test” requirements also qualify for this tax incentive. This test is the in-service emission standard for diesel vehicles under the Australian Transport Council.
Lastly, operators that do regular engine maintenance on vehicles can claim the tax credit. They can follow either the manufacturer’s schedules or those the Transport Secretary recommends.
Clean Fuel Grants
Businesses that manufacture and import clean fuels may request for clean fuel grants. According to Australian Taxation Office, “it offsets the excise or customs duty payable on biodiesel or renewable diesel, reducing the effective duty to nil.” These clean fuels include renewable diesel, biodiesel and blends with the latter. Records must be available five years after the claim.
Australia taxes vehicles based on type and fuel used on the road. For heavy vehicles, including transportation tanks, it could mean an increase or decrease in charges on road component.
Whether it’s the first or the latter, operators and businesses in import and manufacturing can take a look at the schemes above for these are ways to save on operational expenses and at the same time keep efficient vehicles safe for the environment.