What are Fuel Tax Credits?

Fuel tax credits provide you with a credit for the fuel tax (excise or customs duty) included in the price of fuel you use for your business activities in:

  • Machinery
  • Plant
  • Equipment
  • Heavy vehicles

Fuels that are not eligible are:

  • Aviation fuels (aviation gasoline and aviation kerosene)
  • Fuels you use in light vehicles of 4.5 tonnes gross vehicle mass (GVM) or less, travelling on public roads
  • Fuel you acquired but did not use because it was lost, stolen or otherwise disposed of
  • Some alternative fuels, such as ethanol or biodiesel that have already received a grant or subsidy

You must be registered for both GST and fuel tax credits before you can make a claim on your business activity statement (BAS). Fuel tax credits are also business income and need to be in your tax return at ‘Assessable Government industry payments’.
Depending on your circumstances, you may also need to meet an environmental criterion for heavy diesel vehicles if they were manufactured before 1 January 1996.

Types of use
It is imperative that the fuel in which you intend to claim under this program is correctly able to be identified. The type of use determines the rate per litre you are entitled to. Therefore, the correct identification is imperative. Fuel eligible to be claimed may be used for the following purposes:

  • In heavy vehicles (a vehicle that has a GVM of greater than 4.5 tonnes) for travelling on public roads
  • All other business uses – on private roads, off public roads etc.
  • To power auxiliary equipment of a heavy vehicle travelling on public roads, such as a refrigeration unit
  • Supply of fuel for domestic heating
  • Supplying LPG

If you think that your business may be eligible to qualify for this rebate, please contact Dennis Barnett or a member of the AFS Business Services Team to discuss further.