Fuel Tax Credits
[Update 1 Aug 2017] Fuel Tax Credits Rates applicable from 1 August 2017
[Update 1 July 2017] Fuel Tax Credits Rates applicable from 1 July 2017
[Update 1 February 2017] In line with the 6-monthly inflation adjustments (February and August), fuel tax credit rates for heavy vehicles on public roads have increased to 14.2 cents per litre, along with changes to a number of other rates from 1 February 2017. See links to all the current rates here.Update 1 August 2016] In line with the 6-monthly inflation adjustments (February and August), fuel tax credit rates for heavy vehicles on public roads have increased to 13.7 cents per litre, along with changes to a number of other rates from 1 August 2016. See links to all the current rates here. [Update 1 July 2016] Fuel tax credit rates for heavy vehicles using diesel or petrol on public roads have increased to 13.6 cents per litre, and rates for bio fuels have changed. [Update March 2016] From March 2016 businesses with under $10,000 of credits annually can use simplified BAS calculation methods. When there is a rate change, the BAS period end rate can be used, along with an average fuel price for the period. See more on this here.
The Tax Office has also published information on heavy vehicles (for example a tractor or backhoe) which may be treated as all business use, even if sometimes driven on a public road.
Fuel tax credit changes from 2014-15 and 2015-16 rates
From 1 July 2014, the carbon charge was removed from fuel tax credits. Rates were subsequently increased on 10 November 2014, and as a result of the introduction of 6-monthly indexation, changed again on 2 February 2015 and on subsequent indexation dates.
A consequence of these measures is that monthly, quarterly or annual BAS returns data in 2014-15 will need to be organised to separately identify fuel purchases before and after the indexation date, in order to reflect the correct fuel tax credit claim.
The purpose of the fuel credit schemes is to reduce the cost of some fuels or to encourage waste oil recycling. Credits are for the fuel tax (excise or customs duty) included in fuel used in the business activities of:
- heavy vehicles
A fuel tax credit may also be available in respect to the cost of compressed natural gas (CNG) which has been carbon price adjusted and used in certain agriculture, fishing or forestry.
Fuels which don’t qualify for the fuel tax credit are
- aviation fuels
- fuels used in light vehicles of 4.5 tonne gross vehicle mass or less travelling on a public road
- fuel not used use because it was lost, stolen or otherwise disposed of
- some alternative fuels
How to Register For Fuel Tax Credits
Registration for both GST and fuel tax credits is required before fuel tax credits can be claimed. If already registered for GST, the registration for fuel tax credits can be added by an authorised contact person.
For fresh business applications an ABN, GST and fuel tax credit registrations can all be applied for together.
Forms and contact details for registration are available from the Tax Office here.
Fuel tax credits are claimed in the business activity statement (BAS).
Omitted fuel tax credits – a choice
Recovering a tax credit claim which has been missed from an already-lodged BAS return can be made by including the claim in a future return, or by lodging an amended prior period return. See ATO ID 2014/4
Heavy Vehicles – road user charges – apportioning taxable fuel
A heavy vehicle fuel tax credit is reduced by the amount of the road user charge to the extent that the fuel is used for travel on a public road. This requires an apportionment of fuel use. For guidance, see: Fuel tax credits – apportioning taxable fuel used in a heavy vehicle with auxiliary equipment – PCG 2016/11 and note also FTD 2016/1 – Fuel used for idling and cabin air-conditioning of a vehicle on a public road
Fuel Tax Credits Eligibility Flow Chart
(click to enlarge)
- Fuel Tax Credit Calculator & Tools
- ATO – Fuel Schemes
- Fuel tax credits calculation worksheet – ATO
- FTD 2010/1 Fair and reasonable apportionment to calculate fuel tax credit entitlement.
- PCG 2016/2 Fuel tax credits — practical compliance methods for small claimants
- PCG 2016/3 Fuel tax credits — fuel tax credit rate for non business claimants
- PCG 2016/4 Fuel tax credits — incidental travel on public roads by certain vehicles.
- FTD 2016/1 – Fuel used for idling and cabin air-conditioning of a vehicle on a public road
- Fuel Blends
- Fuel Tax (Fuel Blends) Determination 2016 (No. 1)
This page was last modified on 2017-10-21