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February 2004 Newsletter

This scheme was introduced on 1 July 2000 to help businesses cut fuel costs particularly in regional and rural Australia.  Under the fuel scheme eligible businesses are paid a grant which is based on a flat rate per litre of fuel equivalent to 18.510 cents per litre of diesel fuel effective 1 February 2001.

The grant is available to businesses for on-road use of diesel and alternative fuels (except for gas) in vehicles that are gross vehicle mass (GVM) of 4.5 tonnes or more. 

For vehicles that are GVM greater than 4.5 tonnes but less than 20 tonnes, the grant is not payable for trips that are within a defined metropolitan area unless the trip is taken:

1. By or on behalf of a primary producer for their primary production activities;
2. By emergency service vehicles; or
3. Goods transported for a primary production business.

For vehicles 20 tonnes or more all trips on all public roads are eligible for the fuel grant.

To be eligible for the grant you must nominate the vehicle for the grant, purchase and use the fuel for the vehicle and operate the vehicle solely for use in a business. 

What is GVM?

Rigid Vehicles - The GVM of any rigid vehicle is the maximum weight of mass as specified by the manufacturer.  For this scheme trailers cannot be included in the GVM of a rigid vehicle.

Articulated Vehicles - The GVM of a prime mover is the gross combination mass within the meaning of the Interstate Road Transport Regulation 1986.

Metropolitan Areas

For vehicles with a GVM of at least 4.5 tonnes but less than 20 tonnes that transport goods or passengers for business other than primary production business, the trip is considered eligible if the travel is:

• between a point outside the defined metropolitan area and another point outside the defined metropolitan area;
• between two different defined metropolitan areas; or
• between a point outside the defined metropolitan area and a point inside a defined metropolitan area or vice versa. 

For more information see the Diesel and Alternative Fuel Grants Ruling as published by the Australian Taxation Office.

The Government co-contribution applies to personal contributions made by low income earners from 1 July 2003 onwards.

The Government co-contribution will match eligible personal superannuation contributions made by qualifying low income earners up to $1,000. The amount of co-contribution that you will get depends on your income and the personal contributions that you made during the financial year. The maximum amount of co-contribution for a financial year is $1,000 and is available to people on incomes of $27,500 or less.  The maximum amount phases out by 8 cents per dollar of income up to an income of $40,000, when it phases out completely.  For example, if you earned $39,000 for the year you would only be entitled to an $80 government contribution on a $1,000 contribution.

The ATO will work out if you are entitled to receive a co-contribution using information from your superannuation fund and your tax return.  The co-contribution will then be paid directly into your superannuation account or RSA.

The Land Tax threshold for 2004 is $317,000, up $56,000 on last year.  The threshold is applied to the unimproved value of land owned at midnight on 31 December 2003 excluding your principal place of residence.  The tax is calculated as $100 plus 1.7cents for each dollar the land value exceeds the threshold.

The Premium Property Tax threshold for 2004 is $1.97 million.  This tax is applied to principal places of residence owned at midnight on 31 December 2003 whose unimproved land value exceeds the threshold.  The rates are the same as those for Land Tax.

The value of your land is assessed by the Valuer General at 1 July each year.  If you believe you may be liable for Land Tax please contact this office.

"There are few greater stimuli to human ingenuity than the prospect of avoiding fiscal liability. Experience shows that under this stimulus, human ingenuity outreaches Parliamentary prescience."