What are PTO safe harbour rates?
PTO safe harbour rates are optional ATO percentages under PCG 2016/11 for apportioning taxable fuel used in certain heavy vehicles with auxiliary equipment. Each percentage identifies the share for which the fuel tax credit is not reduced by the road user charge. It covers auxiliary-equipment use and fuel used off public roads, rather than PTO fuel alone.
Power take-off (PTO) equipment uses fuel to operate equipment attached to a vehicle, such as a concrete mixing barrel, loader crane or tipping mechanism. Fuel used for such equipment can have different fuel tax credit treatment from fuel used for travel on public roads.
The Australian Taxation Office's Practical Compliance Guideline PCG 2016/11 sets out the vehicle and equipment types covered by these percentages.
You may instead use another apportionment method that is fair and reasonable for your circumstances, supported by appropriate records.
Which percentage applies to my vehicle?
| Vehicle and auxiliary equipment described in PCG 2016/11 | Percentage |
|---|---|
| Concrete transit vehicle: mixing barrel and associated loading, unloading and transport mechanisms | 30% |
| Commercial bus or coach: passenger air conditioning | 5% |
| Refrigerated vehicle: refrigeration unit for temperature-sensitive goods | 10% |
| Waste collection vehicle: bin lifting and compaction equipment | 15% |
| Vehicle with listed specialised equipment, such as an elevated work platform, truck-mounted loader crane, drilling or pumping equipment, dry-goods blower or tipping equipment | 5% |
| Long-haul vehicle with sleeper cabin: air conditioning the sleeping compartment during a driver's sleeping break | 5% |
The table is a summary of the ATO's vehicle and equipment categories, not a general PTO rate for every vehicle. The guideline has detailed descriptions and conditions for each category. In particular, a vehicle with more than one type of specialised equipment does not apply the 5% specialised-equipment percentage more than once.
What does a percentage mean?
For illustration, if an eligible refrigerated heavy vehicle acquired 10,000 litres of taxable fuel for a period, the 10% figure identifies 1,000 litres as the share for which the road user charge would not be deducted under this simplified method. The remaining fuel must still be treated according to its actual use and the applicable FTC rules. The percentage does not itself determine the whole FTC claim or replace evidence of fuel acquisition and use.
Where Nuonic has GPS-based or other apportionment information for an asset, review the selected calculation method before using a safe harbour percentage. Applying both methods to the same fuel without reconciling them could double count eligible activity. The business remains responsible for choosing a suitable method and substantiating its claim; seek advice from your tax adviser where needed.