---
title: Archer Gowland Tax Update October 2018
description: Ian Walker from Archer Gowland explains the recent business tax updates for business owners in Australia.
image: https://blog.agredshaw.com.au/hubfs/AG%20business%20tax%20update%20131018.png
---

- [** info@agredshaw.com.au](mailto:info@agredshaw.com.au)
- [** 07 3002 2699](tel:0730022699)
- [** Pay Account](http://dev3.ignitionmedia.com.au/pay-account/)

x

[Archer Gowland Redshaw](https://agredshaw.com.au/)

Blog

 

 

 

[Home](https://blog.agredshaw.com.au/) / Blog

# Archer Gowland Tax Update October 2018

![AG business tax update 131018](https://blog.agredshaw.com.au/hs-fs/hubfs/AG%20business%20tax%20update%20131018.png?width=290&name=AG%20business%20tax%20update%20131018.png)I have put together a handy tax update so you can ensure none of the following taxation topics have slipped past your radar.

**Fuel tax credits**

Fuel tax credit rates increased on 1 August, so don't forget to use the new rates to calculate your claims on your next business activity statement (BAS). 

If you claim less than $10,000 in fuel tax credits each year, you can use the ATO’s simplified methods to keep records and calculate your claims.

**Use the rate that applies at the end of the BAS period**

When there is a change of rate during the business activity statement (BAS) period (for example, in February and August), you can calculate your fuel tax credit claim by using the rate that applies at the end of the period.

There is no need to split your fuel purchases during the period and use two different rates. Simply total your litres for the period and use the rate that is current on the last day of the BAS period to work out your claim.

To work out the quantity of fuel you purchased in a tax period, you can simply use the total cost of fuel you purchased in the BAS period, divided by the average price per litre for the BAS period.

**Calculate your litres as follows:**

**Litres = Total cost of fuel purchased ÷ Average price of fuel **                                           

You can find out the average weekly retail fuel price for your area by using aip.com.au.

**Simplified record keeping**

You can use the following records to substantiate claims of less than $10,000 per year:

- Contractor statement – where an amount for fuel used in the performance of services is deducted from the amount payable for the services
- Financial institution statements (business or personal credit/debit accounts) – where only the dollar amount is displayed on the statement
- Point-of-sale docket – where the docket either does not itemise the quantity of fuel dispensed or the quantity is illegible
- Fuel supplier statement or invoice – where only the dollar amount is displayed on the statement

**Simplified methods for all claims**

**Heavy vehicles used mainly off public roads**

If your vehicle is on the list of heavy vehicles that the ATO considers are used mainly off public roads (for example, a harvester or backhoe) you no longer need to apportion on and off-road travel when calculating your fuel tax credit claim.

You can claim all fuel used in these vehicles at the 'all other business uses' rate, even if you sometimes drive the vehicle on a public road.

**Fuel used to power auxiliary equipment**

If you use fuel to power the auxiliary equipment of a heavy vehicle (for example, a concrete mixing barrel or elevated work platform), you can use a percentage that the ATO has set to work out how much fuel is used for powering this equipment.

When you use these percentages, you don't need to do complex calculations or sample testing to work out how much fuel is used for the auxiliary equipment. 

**Instant asset write off**

The $20,000 threshold has been recently extended to 30 June 2019.

If you buy an asset and it costs less than $20,000, you can write off the business portion in your tax return for the relevant income year.

You are eligible to use simplified depreciation rules and claim an immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

- You had a turnover less than $10 million (increased from $2 million on 1 July 2016), and
- The asset was first used or installed ready for use in the income year you are claiming it in

Assets that cost $20,000 or more can't be immediately deducted. They will continue to be deducted over time using the general small business pool. You write off the balance of this pool if the balance (before applying any other depreciation deduction) is less than $20,000 at the end of an income year.

The $20,000 threshold applies from 12 May 2015 to 30 June 2019 and reduces to $1,000 on 1 July 2019.

**New rate for car expenses**

The rate for work-related car expenses has increased for the income year starting 1 July 2018. It is now 68 cents per kilometre.

This applies if you have chosen to use the cents per kilometre method for calculating work-related car expenses.

If you are paying your employees a car allowance in excess of 68 cents per kilometre, you need to withhold tax on the amount you pay over 68 cents.

**Eligibility changes for lower company tax rate**

From the 2017–18 income year, you must be a base rate entity to be eligible for the lower 27.5% company tax rate. A base rate entity must have:

- A turnover less than $25 million (this turnover threshold increased to $50 million from 2018-19), and
- 80% or less of its assessable income as passive income (for example, interest, dividends or rent). This replaces the 'carrying on a business' test

**What you need to do**

- Check if your company has earned 80% or less passive income and if so apply the lower rate of 27.5% when completing your company tax return (if you have more, apply the general rate of 30%)
- If you've already lodged your 2018 company tax return using the incorrect rate, you will need to make an amendment
- When working out the company tax rate to use for franking your distributions, use your previous year's turnover, assessable income and base rate entity passive income
- If you’ve issued distribution statements using the incorrect rate, you should tell your shareholders the correct dividend and franking credit amounts as soon as possible. You should also let us know the correct amounts through your company's annual dividend reporting process

**More information**

For more information on managing your tax commitments, please contact Ian Walker at Archer Gowland on 07 3002 2699.

![Ian Walker](https://blog.agredshaw.com.au/hubfs/IW%20(2021)%20-%20HubSpot%20(1).png)

### Written by [Ian Walker](https://blog.agredshaw.com.au/author/ian-walker)

As Executive Chairman, Ian is a trusted Professional Services practitioner with over 25 years’ experience within the Accounting industry. Working closely with his clients to form long-term partnership, Ian provides high-level strategic advice across all areas of Accounting, Business Advisory, Superannuation, and Taxation. Ian is proud to partner with many SME & Family-owned businesses to provide comprehensive and bespoke strategies to help address the challenges and complexities they encounter through day-to-day operations & management.

[LinkedIn](https://au.linkedin.com/pub/ian-walker/b/884/38)

[![Share on Facebook](https://static.hubspot.com/final/img/common/icons/social/facebook-24x24.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fblog.agredshaw.com.au%2Farcher-gowland-federal-budget-update-2018-0%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on LinkedIn](https://static.hubspot.com/final/img/common/icons/social/linkedin-24x24.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.agredshaw.com.au%2Farcher-gowland-federal-budget-update-2018-0%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://static.hubspot.com/final/img/common/icons/social/twitter-24x24.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.agredshaw.com.au%2Farcher-gowland-federal-budget-update-2018-0%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.agredshaw.com.au%2Farcher-gowland-federal-budget-update-2018-0%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=Archer%20Gowland%20Tax%20Update%20October%202018) [![Share on Email](https://static.hubspot.com/final/img/common/icons/social/email-24x24.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fblog.agredshaw.com.au%2Farcher-gowland-federal-budget-update-2018-0%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fblog.agredshaw.com.au%2Farcher-gowland-federal-budget-update-2018-0%3Futm_medium%3Dsocial%26utm_source%3Demail)

- [SMEs (78)](https://blog.agredshaw.com.au/topic/smes)
- [Business Advisory (36)](https://blog.agredshaw.com.au/topic/business-advisory)
- [Management Rights (31)](https://blog.agredshaw.com.au/topic/management-rights)
- [taxation (27)](https://blog.agredshaw.com.au/topic/taxation)
- [Building Your Business Podcast (26)](https://blog.agredshaw.com.au/topic/building-your-business-podcast)
- [Tax (26)](https://blog.agredshaw.com.au/topic/tax)
- [Podcast (24)](https://blog.agredshaw.com.au/topic/podcast)
- [Accounting (22)](https://blog.agredshaw.com.au/topic/accounting)
- [SME Business (15)](https://blog.agredshaw.com.au/topic/sme-business)
- [Professional services firms (14)](https://blog.agredshaw.com.au/topic/professional-services-firms)
- [Small Business (14)](https://blog.agredshaw.com.au/topic/small-business)
- [Superannuation (14)](https://blog.agredshaw.com.au/topic/superannuation)
- [tax rates (14)](https://blog.agredshaw.com.au/topic/tax-rates)
- [Business Management (13)](https://blog.agredshaw.com.au/topic/business-management)
- [Federal Budget (11)](https://blog.agredshaw.com.au/topic/federal-budget)
- [Industry Insight (11)](https://blog.agredshaw.com.au/topic/industry-insight)
- [Property (11)](https://blog.agredshaw.com.au/topic/property)
- [Health (10)](https://blog.agredshaw.com.au/topic/health)
- [Medical & Allied Health (10)](https://blog.agredshaw.com.au/topic/medical-allied-health)
- [superannuation legislation (10)](https://blog.agredshaw.com.au/topic/superannuation-legislation)
- [Business Planning (9)](https://blog.agredshaw.com.au/topic/business-planning)
- [Individuals (9)](https://blog.agredshaw.com.au/topic/individuals)
- [Professional Services (9)](https://blog.agredshaw.com.au/topic/professional-services)
- [Fuel Tax Credits (8)](https://blog.agredshaw.com.au/topic/fuel-tax-credits)
- [Transport (8)](https://blog.agredshaw.com.au/topic/transport)
- [Building & Construction (7)](https://blog.agredshaw.com.au/topic/building-construction)
- [Fringe Benefit Tax (7)](https://blog.agredshaw.com.au/topic/fringe-benefit-tax)
- [superannuation changes (7)](https://blog.agredshaw.com.au/topic/superannuation-changes)
- [Tax Ruling (6)](https://blog.agredshaw.com.au/topic/tax-ruling)
- [Business Growth (5)](https://blog.agredshaw.com.au/topic/business-growth)
- [Expenses (5)](https://blog.agredshaw.com.au/topic/expenses)
- [Financial Assistance (5)](https://blog.agredshaw.com.au/topic/financial-assistance)
- [Insider (5)](https://blog.agredshaw.com.au/topic/insider)
- [Medical (5)](https://blog.agredshaw.com.au/topic/medical)
- [Payroll Tax (5)](https://blog.agredshaw.com.au/topic/payroll-tax)
- [QBCC (5)](https://blog.agredshaw.com.au/topic/qbcc)
- [Strategic Management (5)](https://blog.agredshaw.com.au/topic/strategic-management)
- [Business Assistance (4)](https://blog.agredshaw.com.au/topic/business-assistance)
- [Queensland (4)](https://blog.agredshaw.com.au/topic/queensland)
- [Reminder (4)](https://blog.agredshaw.com.au/topic/reminder)
- [Strategy (4)](https://blog.agredshaw.com.au/topic/strategy)
- [Tax Planning (4)](https://blog.agredshaw.com.au/topic/tax-planning)
- [Transport & Logistics (4)](https://blog.agredshaw.com.au/topic/transport-logistics)
- [ATO (3)](https://blog.agredshaw.com.au/topic/ato)
- [Business Commentary (3)](https://blog.agredshaw.com.au/topic/business-commentary)
- [Current Trends (3)](https://blog.agredshaw.com.au/topic/current-trends)
- [Division 7A (3)](https://blog.agredshaw.com.au/topic/division-7a)
- [Economic forecast (3)](https://blog.agredshaw.com.au/topic/economic-forecast)
- [Foreign Resident Capital Gains Withholding (3)](https://blog.agredshaw.com.au/topic/foreign-resident-capital-gains-withholding)
- [Year-End (3)](https://blog.agredshaw.com.au/topic/year-end)
- [superannuation reform (3)](https://blog.agredshaw.com.au/topic/superannuation-reform)
- [Agribusiness (2)](https://blog.agredshaw.com.au/topic/agribusiness)
- [Audit (2)](https://blog.agredshaw.com.au/topic/audit)
- [COVID-19 (2)](https://blog.agredshaw.com.au/topic/covid-19)
- [Capital Gains (2)](https://blog.agredshaw.com.au/topic/capital-gains)
- [Cash Flow Management (2)](https://blog.agredshaw.com.au/topic/cash-flow-management)
- [GST (2)](https://blog.agredshaw.com.au/topic/gst)
- [Grants (2)](https://blog.agredshaw.com.au/topic/grants)
- [Income (2)](https://blog.agredshaw.com.au/topic/income)
- [Key Dates (2)](https://blog.agredshaw.com.au/topic/key-dates)
- [Legal (2)](https://blog.agredshaw.com.au/topic/legal)
- [Personal Services Income (2)](https://blog.agredshaw.com.au/topic/personal-services-income)
- [Reporting (2)](https://blog.agredshaw.com.au/topic/reporting)
- [SMSF (2)](https://blog.agredshaw.com.au/topic/smsf)
- [Single Touch Payroll (2)](https://blog.agredshaw.com.au/topic/single-touch-payroll)
- [State Budget (2)](https://blog.agredshaw.com.au/topic/state-budget)
- [Tax Checklist (2)](https://blog.agredshaw.com.au/topic/tax-checklist)
- [Tax Returns (2)](https://blog.agredshaw.com.au/topic/tax-returns)
- [Archer Gowland Redshaw (1)](https://blog.agredshaw.com.au/topic/archer-gowland-redshaw)
- [Asset Withholding Tax Changes (1)](https://blog.agredshaw.com.au/topic/asset-withholding-tax-changes)
- [Body Corporate (1)](https://blog.agredshaw.com.au/topic/body-corporate)
- [Bookkeeping (1)](https://blog.agredshaw.com.au/topic/bookkeeping)
- [Business Grants (1)](https://blog.agredshaw.com.au/topic/business-grants)
- [CFO Advisory (1)](https://blog.agredshaw.com.au/topic/cfo-advisory)
- [Commercial Lease Agreements (1)](https://blog.agredshaw.com.au/topic/commercial-lease-agreements)
- [Digital (1)](https://blog.agredshaw.com.au/topic/digital)
- [Electric Vehicle (1)](https://blog.agredshaw.com.au/topic/electric-vehicle)
- [FBT (1)](https://blog.agredshaw.com.au/topic/fbt)
- [First Anniversary (1)](https://blog.agredshaw.com.au/topic/first-anniversary)
- [Human Resources (1)](https://blog.agredshaw.com.au/topic/human-resources)
- [JobKeeper (1)](https://blog.agredshaw.com.au/topic/jobkeeper)
- [Leadership (1)](https://blog.agredshaw.com.au/topic/leadership)
- [Legislation (1)](https://blog.agredshaw.com.au/topic/legislation)
- [Legislation Update (1)](https://blog.agredshaw.com.au/topic/legislation-update)
- [Management Reporting (1)](https://blog.agredshaw.com.au/topic/management-reporting)
- [March (1)](https://blog.agredshaw.com.au/topic/march)
- [Marketing (1)](https://blog.agredshaw.com.au/topic/marketing)
- [Quarterly Chairman's Message (1)](https://blog.agredshaw.com.au/topic/quarterly-chairmans-message)
- [Regional Queensland (1)](https://blog.agredshaw.com.au/topic/regional-queensland)
- [Rental Property (1)](https://blog.agredshaw.com.au/topic/rental-property)
- [SMSF Audit (1)](https://blog.agredshaw.com.au/topic/smsf-audit)
- [Talent & Recruitment (1)](https://blog.agredshaw.com.au/topic/talent-recruitment)
- [Telehealth (1)](https://blog.agredshaw.com.au/topic/telehealth)
- [Update 2022 (1)](https://blog.agredshaw.com.au/topic/update-2022)
- [Workforce Planning (1)](https://blog.agredshaw.com.au/topic/workforce-planning)
- [financial investment (1)](https://blog.agredshaw.com.au/topic/financial-investment)
- [financial plan (1)](https://blog.agredshaw.com.au/topic/financial-plan)
- [financial planning (1)](https://blog.agredshaw.com.au/topic/financial-planning)
- [gst on foreign travel agency bookings (1)](https://blog.agredshaw.com.au/topic/gst-on-foreign-travel-agency-bookings)
- [lantern advisory (1)](https://blog.agredshaw.com.au/topic/lantern-advisory)
- [management rights gst (1)](https://blog.agredshaw.com.au/topic/management-rights-gst)
- [primary producer (1)](https://blog.agredshaw.com.au/topic/primary-producer)
- [small business company tax rate (1)](https://blog.agredshaw.com.au/topic/small-business-company-tax-rate)

[See All Topics](https://blog.agredshaw.com.au/archer-gowland-federal-budget-update-2018-0#)

 

> [Archer Gowland Redshaw](https://www.facebook.com/agredshaw/)

## Subscribe to our Newsletter

![archer-gowland-redshaw-logo-reversed](https://blog.agredshaw.com.au/hs-fs/hubfs/Imported%20sitepage%20images/archer-gowland-redshaw-logo-reversed.png?width=248&height=107&name=archer-gowland-redshaw-logo-reversed.png)

- [Accounting & Tax Compliance](http://dev3.ignitionmedia.com.au/services/accounting-tax-compliance/)
- [Business Advisory](http://dev3.ignitionmedia.com.au/services/business-advisory/)
- [Family Office](http://dev3.ignitionmedia.com.au/services/family-office/)
- [Management Rights](http://dev3.ignitionmedia.com.au/services/management-rights/)
- [Superannuation](http://dev3.ignitionmedia.com.au/services/superannuation/)
- [Virtual CFO & Consulting](http://dev3.ignitionmedia.com.au/services/virtual-cfo-consulting/)

### Contact Us

- [07 3002 2699](tel:07%203002%202699)
- [info@agredshaw.com.au](mailto:info@agredshaw.com.au)

### Visit Us

- Level 3, 345 Ann Street, Brisbane QLD 4000
- Monday to Friday, 8:30AM – 5:00PM

Copyright 2021 Archer Gowland Redshaw. All Rights Reserved. Website by [Ignition Media](https://ignitionmedia.com.au).