The rate of fuel duty increased from 38.143 to 38.6 cents per litre on 10 November 2014.
However, until the tabled proposals become law, councils will be required to absorb the costs. In addition, fuels other than diesel are rarely claimed under the fuel tax credits so councils could have an additional cost attached to those.
According to one IPWEA member, the changes have the potential to cost their council an additional $6400 (based on a annual fuel cost of $1.4m).
Fleet managers are advised to use the ATO’s tax calculator to calculate your fuel tax credits at the most up-to-date rates.
Indexation of fuel duty will return to biannial CPI indexation from 1 February 2015. This is expected to generate additional net revenue of about $19bn over the next decade.
Click here to read more about the ATO’s tax calculator