dominate the sand mining industry and have a GST turnover of more than 20

# Dominate the sand mining industry and have a gst

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dominate the sand mining industry and have a GST turnover of more than \$20 million dollars! Due to this they must report and pay GST monthly and lodge his activity statement electronically. Western Union’s records show that they used \$392,000 of diesel at \$1.42 per litre and \$120,800 of unleaded petrol at \$1.29 per litre for the business excavations for the month of June 2016. The diesel and unleaded petrol they use in their excavators are eligible for fuel tax credits. The current fuel tax credit rate for mining activities is 40.10 cents per litre. Required: a) Calculate the fuel tax credit Western Union Landscaping Supplies Pty Ltd may claim using the basic ‘constructive method’ calculation. (1 Mark) Solution: Litres of diesel used 392000/1.42 = 276,056 Litres of unleaded used 120800/1.29 = 93,643 Total litres used in business activities 369,699 Fuel tax credit 369699* 0.4010= \$14,824 Business Activity Statement, Assessment 1, v1.1 Page 32