Tax Benefits and Operational Efficiency in Refrigerated Transport
Tax Benefits and Operational Efficiency in Refrigerated Transport

Tax Benefits and Operational Efficiency in Refrigerated Transport

  • David
  • February 20, 2024
  • 06 Mins read
Fuel Management
Transport
Refrigeration

In the complex world of logistics and fleet management, where every drop of fuel matters, Australian trucking companies encounter a unique blend of challenges and opportunities. Particularly for those operating refrigerated trailers, the stakes are high—not only in maintaining the quality of perishable goods but also in navigating the financial and operational aspects of fuel consumption.

Maximizing Tax Benefits and Operational Efficiency in Refrigerated Transport

In the intricate dance of logistics and fleet management, where every drop of fuel counts, Australian trucking companies face a unique set of challenges and opportunities. Particularly for those operating refrigerated trailers, the stakes are high—not only in maintaining the quality of perishable goods but also in navigating the financial and operational aspects of fuel consumption.

The Distinct Nature of Refrigerated Trailer Fuel Usage

Fuel consumption in refrigerated units is a critical operational cost, distinct in its tax treatment and implications for fleet management. Unlike standard on-road fuel, the diesel powering these units is eligible for a higher tax rebate in Australia, categorized under off-road usage. This classification underscores the importance of meticulous fuel tracking to unlock significant tax benefits.

Adapting to Fleet Dynamics

A notable aspect of refrigerated transport is the potential change of prime movers towing the refrigerated unit. This variability introduces complexity in attributing fuel costs and operational efficiency metrics accurately. Separate fuel tracking for these units not only aids in claiming tax rebates but also provides invaluable insights into the operational costs of the fleet.

Litres per kilometre (truck): Understanding the fuel efficiency of prime movers, essential for on-road logistics planning.

Litres per hour (refrigerated unit): Gauging the operational efficiency of refrigerated trailers, crucial for off-road fuel tax rebate calculations.

Integrating Fuel Management Solutions

Implementing a robust fuel management system like Fuellox becomes indispensable in this context. It allows for precise monitoring and reporting of fleet management and fuel usage, tailored to the dual needs of on-road travel and refrigerated operations. Such systems empower fleet managers with:

Accurate operational insights: By distinguishing between fuel usage for propulsion and refrigeration, companies can make informed decisions on fleet optimization and cost control.

Enhanced tax rebate processing: With detailed tracking, the process of claiming tax rebates becomes streamlined, ensuring that businesses maximize their financial returns.

Embracing Operational Excellence

The efficiency of refrigerated transport doesn’t just rely on maintaining the right temperature for goods. It extends into the realm of financial savvy and operational insights, where every litre of fuel is accounted for, and every tax benefit is realized. In this landscape, the role of technology and strategic planning cannot be overstated.

The Limitations of Conventional Fuel Management Systems

Traditional fuel management solutions, particularly those dependent on FOBs assigned to vehicles or personnel, present significant challenges in accurately monitoring fuel consumption within a refrigerated transport fleet. These systems often fall short in delivering the detailed, granular reporting necessary to differentiate between refrigerated equipment and the broader transport fleet effectively.

Refrigerated Fleets and Fuellox

Fuellox stands out as a robust ally for refrigerated transport fleet operators, offering an innovative suite of features designed to streamline fuel tracking and allocation. Here’s how Fuellox can redefine fuel management for your fleet:

  • Instant Asset Identification via QR Code: Each refuelling event is accurately allocated to the correct refrigerated unit, eliminating errors and ensuring precise tracking.
  • GPS Tracking for Strategic Refuelling: For fleets with multiple refuelling points, Fuellox’s GPS tracking pinpoints exactly where each asset was refuelled, offering clarity and control over fuel logistics.
  • Comprehensive Tracking of Equipment and Operator Details: Not only does Fuellox monitor which equipment was refuelled, but it also records who performed the refuelling, enhancing accountability and operational insight.
  • Creation of Cost Centre Groups: Fuellox allows for the organization of different assets into cost centre groups, facilitating tailored management and reporting that aligns with your business unit structure across corporate structures, outsourced transport, dry hire fleet and sub contractors.
  • Detailed Fuel Usage Reporting: With Fuellox, fleet operators can easily report fuel usage by business units, distinguishing between on and off-road usage for accurate tax reporting and cost management.

How to configure refrigerated fleets with Fuellox

  1. Create the prime movers
    • Set the Mode to ‘On Road’
    • Set the cost centre to your primary freight costing account
    • Set the Rego to the prime move Rego
  2. Create the Refrigerated Fleet as separate Equipment
    • Set the Name to the refigerated trailer asset
    • Set the Mode to Off Road
    • Set the cost centre to a refigeration expenses cost centre
    • Set the Rego to the trailer Rego
  3. Where QR Codes are in use, use a separate QR Code for the prime mover and another for the refrigerated trailer compartment
    • QR Codes will significantly reduce (or eliminate) the burden of choice for the operator. They can’t select the wrong equipment
    • Just scan the code on any fill point
  4. Operators fill the prime mover as normal.
  5. Fill the Refrigerated unit as a separate transaction.
  6. Monitor On and Off road reporting
  7. Monitor cost centre reporting along with any business unit specific cost centres created

Other Tips

  • Fuellox Projects can help you determine costing for Intra Company freight vs. Delivery of Goods
  • Fuellox can also be used to manage DEF alongside Diesel
  • Presets on refrigerated compartments can reduce the chance of spills by overfill

Forward Thinking

For trucking companies looking to optimize their refrigerated transport operations, the message is clear: embrace detailed fuel tracking and leverage the power of specialized management systems. Doing so not only ensures compliance and financial optimization but also paves the way for sustainable growth and operational excellence.

Next Steps

Call us now to talk about what you need and what you want to achieve.

To make a time with our team to Discuss your Fuel Management needs make a booking here.

Fuellox Team 1300 557 356