September 2024 Newsletter
As we enter the final month of Autumn, the focus has been on the Federal Budget and interest rates. April brought a sharper edge to the economic outlook, with geopolitical tensions, inflation, volatile markets and fragile consumer confidence continuing to weigh heavily on investors. Fuel prices drove inflation higher, with March reaching 4.6% (the largest increase in three years) while underlying inflation remains above the Reserve Bank’s target range. Globally, uncertainty persists, with interest rate outlooks divided and markets experiencing increased volatility.
Our articles cover a range of topics which we hope you will find interesting. We aim to keep you informed of changes as they happen, but we also want to provide ideas to help you live the life you want. Now and into the future.
In this edition, we explore fuel tax credits, highlight common scams to watch out for as we approach EOFY, and examine whether Australia may be at risk of a recession. Additionally, we provide insights into the latest market movements and what they may mean for investors.
If you are interested in discussing the topics raised in this month’s newsletter, please don’t hesitate to contact us.
In the meantime, we hope you enjoy the read.
All the best,
The Wealthy Me Team
Fuel tax credits provides you with a credit (in dollars) for the fuel tax (excise or customs duty) that’s included in the price of fuel used in eligible business activities. Before claiming fuel tax credits, make sure:
the fuel you acquire for use is eligible
the business activities are eligible.
Fuels that are eligible for fuel tax credits include:
liquid fuels
transport gaseous fuels
fuel blends.
Fuels that aren’t eligible if they have no excise or customs duty paid on them.
Fuels you can’t claim for include:
aviation fuels
additives
non-transport gaseous fuels
bulk non-transport liquefied petroleum gas (LPG) that hasn’t had excise or customs duty paid on it
fuel that’s used for private purposes.
Heavy vehicles travelling on public roads
You can generally claim fuel tax credits for eligible fuels you use in heavy vehicles for travelling on public roads.
The fuel must have been used for business purposes in a heavy vehicle that has a gross vehicle mass (GVM) greater than 4.5 tonnes.
Diesel vehicles acquired before 1 July 2006 can be equal to 4.5 tonnes GVM.
You can’t claim fuel tax credits for fuels you use in light vehicles of 4.5 tonnes GVM or less, travelling on public roads (for example, a car, four-wheel drive, utility, small van, taxi or ride-sourcing services).
To claim fuel tax credits for heavy diesel vehicles manufactured before 1 January 1996, you must meet specific environmental criteria.
All other business uses. You may be able to claim fuel tax credits for eligible fuels you use in all other business activities such as:
travel on private roads and travel off public roads in light or heavy vehicles
for powering auxiliary equipment in heavy vehicles
for non-fuel uses
for packaging or supplying eligible fuels
for eligible business activities, for example agriculture, construction and wholesale/retail.
The ATO Fuel tax credit eligibility tool helps you find out if you can claim fuel tax credits for fuel you acquire and use in your business. You can use this tool to identify general eligibility requirements. It doesn’t cover everything so check the rules that may be specific to your fuel and business activity.
Once you’ve identified that your fuel and business activity are eligible for fuel tax credits, calculate your claim. To do this, you’ll need to know:
what fuel tax credit rate applies
how many litres of fuel you can claim
what method to use to calculate your fuel tax credits claim.
There are 2 fuel tax credit rates for liquid fuels such as diesel and petrol. These are:
the rate for fuel used in heavy vehicles for travelling on public roads
the rate for all other business uses.
There are different fuel tax credit rates for other fuels such as biodiesel, gaseous fuels such as compressed natural gas (CNG) and liquefied natural gas (LNG).
You may need to know the rates to help work out how many litres of fuel to claim.
When you claim fuel tax credits, you must use the rate that applies on the date you acquired the fuel.
To work out fuel quantity, you can use any of the following commonly used methods for apportionment:
constructive method
deductive method
percentage use method.
You may be able to use one of the simplified methods to calculate your claim:
Simplified methods for claims less than $10,000 each year:
the basic method for heavy vehicles
use the rate that applies at the end of the business activity statement (BAS) period
work out the litres of fuel purchased
simplified record keeping.
Simplified methods for all claims:
heavy vehicles used mainly off public roads
simplified method for calculating fuel used in heavy vehicles with auxiliary equipment.
You can use the ATO Fuel tax credit calculator to help calculate most simplified fuel tax credit claims, as well as general claims. It provides options for calculating:
claims on an original BAS
claims using simplified fuel tax credits
an adjustment or correction for a previous BAS.
To claim fuel tax credits, you must be registered for GST and for fuel tax credits.
You claim fuel tax credits on your BAS at:
7D – Fuel tax credit. Include all the fuel tax credits you’re entitled to for the tax period in this label.
7C – Fuel tax credit overclaim. Only complete this label if you need to decrease your entitlement to a fuel tax credit you previously claimed.
Fuel tax credits are assessable income and must be included in the tax return at assessable government industry payments.
If you have any questions regarding fuel tax credits, feel free to reach out to us.
Source: ato.gov.au
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://smallbusiness.taxsuperandyou.gov.au/fuel-tax-credits/fast-facts
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As the end of the financial year approaches, it’s a busy time for preparing your taxes, reviewing super, and getting your finances in order. Unfortunately, it’s also a peak period for scammers looking to take advantage of people and businesses who are focused on deadlines and end-of-year financial tasks.
EOFY creates the perfect environment for fraud. With refunds, payment reminders, super contributions, and updated financial documents all top of mind, scammers rely on urgency and distraction to trick people into handing over personal or financial information.
Knowing what to watch for can save you stress, money, and headaches. This guide highlights the most common EOFY scams and offers practical tips to help protect your finances before you act.
A common scam involves messages pretending to be from the Australian Taxation Office. These can arrive as emails, text messages, or phone calls, claiming that a refund is due or that a tax debt must be paid immediately.
Scammers create urgency by threatening penalties, legal action, or freezing accounts. They often ask for payment via unusual methods like gift cards, cryptocurrency, or direct bank transfer. The ATO will never request payment in these ways.
Always verify suspicious communications independently. Do not click links or provide personal information in response to unexpected messages. If in doubt, search online to find the correct contact details.
EOFY is a particularly high-risk time for businesses. Scammers often send emails that look like they come from payroll providers, accounting software platforms, banks, or even bookkeepers.
These emails may request login credentials, bank information updates, or contain attachments that install malware. Verify any unusual requests by calling the organisation using a trusted phone number. Never rely on the contact details or links provided in the email itself.
Even seemingly minor requests can be part of a larger scheme. A small error in payment details can lead to ongoing losses if scammers are able to redirect multiple invoices over time.
Businesses finalising accounts are often targeted with fake invoices or intercepted invoices that have altered bank account details.
Because these payments are routine and expected, they can be processed without question. Always double-check any changes to payment details with the supplier before sending funds. A quick verification call can prevent significant financial loss.
It’s also wise to keep a consistent process for approving payments, including multiple checks or sign-offs for large amounts, to reduce the risk of falling victim to invoice scams.
Scammers take advantage of EOFY financial reviews by promoting fake investment opportunities or superannuation schemes that promise high returns or tax advantages. Some even claim to help access super early to “avoid tax” or “invest better.”
Be cautious of unsolicited offers and guaranteed returns. Only consider changes to super or investments through verified and legitimate channels. Check any adviser or company through the official regulatory registers before taking any action.
Short text messages or social media ads claiming you are eligible for a tax refund are increasingly common. These often contain links to fake websites that collect personal information. Scammers may use official-looking logos, branding, and URLs to make the message appear legitimate.
Do not click on links from unexpected messages. Verify the legitimacy of any refund or offer through official websites and use secure channels for submitting sensitive information.
At EOFY, it’s important to slow down. Scammers rely on urgency. Messages that pressure you to take immediate action or threaten consequences are red flags. Verify first, act second.
Keep devices and software up to date, use strong and unique passwords, and enable two-factor authentication where possible. Keep an eye on your accounts for unusual activity and regularly review payment processes to make sure safeguards are in place.
EOFY should be a time to tidy up finances and plan for the year ahead. Protecting yourself from scams ensures that money stays where it belongs and that EOFY is a time for financial clarity, not stress.
For any questions or concerns about suspicious communications, talk to us. A quick check now can prevent problems later and give peace of mind while managing your EOFY finances.
Talk of a recession in Australia has picked up in recent weeks. Rising fuel prices, a sharp fall in consumer confidence, and signs of softer spending have all added to concerns the economy may be losing momentum.
A recession is commonly defined as two consecutive quarters of negative economic growth. By that standard, Australia is not there yet — but the key question is what the data are telling us about the likelihood of getting there.
The answer depends on which data you look at.
Let’s start with the national accounts, the broadest measure of how the economy is travelling. The December quarter was solid, with annual real gross domestic product (GDP) growth running at 2.6%.
That was the fastest growth in almost three years and is not an economy in recession. It suggests activity remained reasonably resilient heading into 2026, supported by ongoing demand and broadly strong economic conditions.
But the national accounts report is backward-looking. It tells us where the economy has been, not necessarily where it is going.
More timely indicators show hints of a slowdown. Since the war in Iran began five weeks ago and pushed local petrol and diesel prices higher, consumer confidence has fallen sharply.
Measures from the ANZ-Roy Morgan Consumer Confidence survey show confidence fell to a record low in late March before edging up slightly in the latest reading. Despite this modest rebound, sentiment remains very subdued, suggesting households are increasingly cautious about the outlook.
Spending figures dating from before the Iran war began point to a weakening in demand.
Official monthly data from the Australian Bureau of Statistics point in the same direction. The Household Spending Indicator shows spending fell 0.5% in December and has only recovered modestly since, pointing to a clear loss of momentum in household demand.
Business surveys reinforce this picture. The NAB quarterly business survey shows conditions remain above average but have eased, while confidence has fallen to a 15-month low. Companies are still operating at reasonable levels, but they are becoming more cautious about the outlook.
Together, these data suggest the economy is not stalling — but it is clearly slowing down.
Several forces help explain this shift.
First, interest rates are weighing on economic activity. The Reserve Bank of Australia has increased the cash rate, adding to borrowing costs. Monetary policy works with a lag, meaning the full effect of these rate rises has not yet been felt in consumer spending and business investment.
Economists and financial markets also expect more rate increases because of the RBA’s concerns about inflation. That would further depress demand.
Reserve Bank Governor Michele Bullock is closely watching inflation. Dan Himbrechts/AAP
Second, fuel prices have risen sharply, squeezing household budgets. Higher petrol costs both lift inflation and reduce real incomes, leaving less room for spending on other things.
Third, uncertainty has increased. Businesses are becoming more cautious about hiring and investment, as reflected in the NAB Quarterly Business Survey, where confidence has recently turned negative.
The labour market is also beginning to soften. The unemployment rate edged up to 4.3% in February. While still relatively low by historical standards, this suggests jobs growth has slowed.
Together, the data do not currently point to an imminent recession. The level of economic activity remains solid, and the labour market, while softening, is still relatively resilient.
But they do point to growing downside risks.
A recession would likely require a combination of shocks rather than a single trigger. These could include:
a sustained rise in fuel prices that further erodes household purchasing power
interest rates staying higher for longer, or rising further than expected
a sharper pullback in consumption as household savings buffers are run down
a more pronounced deterioration in the labour market.
If several of these forces were to occur together, one or two quarters of negative growth would become more plausible.
The data suggest Australia is not currently in recession, but the economy is slowing and becoming more vulnerable.
Backward-looking indicators still show economic resilience, but more timely data point to weakening momentum.
The most likely outcome is a period of weak growth rather than a sharp downturn. But the margin for error is narrowing.
Whether Australia ultimately slips into recession will depend less on where the economy is today and more on what happens next — particularly in energy prices, household spending and the path of interest rates.
Source: The Conversation
Stay up to date with what’s happened in the Australian economy and markets over the past month.
April brought a sharper edge to the economic outlook.
The Middle East crisis, inflation, volatile markets and fragile consumer confidence are continuing to weigh heavily on investors. Stocks rallied as hopes for a U.S.-Iran ceasefire grew, only to decline as the Strait of Hormuz remained largely closed. The ASX experienced a volatile month, after a strong mid-month rally became a prolonged losing streak.
Annual inflation surged to 4.6%, up from 3.7%, driven by a 32.8% monthly spike in fuel prices due to Middle East conflict. However, trimmed mean inflation, which is the RBA’s preferred measure of underlying inflation, remained steady at 3.3%.
Click the video below to view our update.
Please get in touch if you’d like assistance with your personal financial situation.
