Fuel tax credits and GST instalments

Fuel tax credits were introduced on 1 July 2006 and eligibility was expanded on 1 July 2008. Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) included in the price of fuel they use in machinery, plant, equipment and heavy vehicles for business purposes.

The only fuels that are not eligible are:

• aviation fuels
• some alternative fuels
• fuels you use in light vehicles of 4.5 tonne gross vehicle mass (GVM) or less, travelling on a public road
• fuel you acquired but did not use because it was lost, stolen or otherwise disposed of.

You must be registered to claim fuel tax credits.

From 1 July 2012, fuel tax credit rates have changed. You may be affected by one or more of the following rate changes: an increase in the rate from 19.0715 cents per litre for taxable liquid fuels (eg petrol, diesel or fuel oil) used in some off-road business activities a carbon charge which reduces rates for some fuel types and activities (excluding specified agriculture, fishing, forestry and road transport activities and non-combustible fuel use) a decrease in the rate for heavy vehicles travelling on public roads changes in the rates for some gaseous fuels - these are liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG) changes in the rates for some blended liquid fuels. For more information about these rate changes, refer to Fuel tax credits - changes from 1 July 2012.

You can claim fuel tax credits at the time you acquire, manufacture, or import the fuel into Australia. However, if it suits your business operations, you can choose to claim when you have used the fuel.

Use the rate when the fuel was acquired

From 1 July 2012 when rates change, you need to use the rate that applied when you acquired the fuel. This may not necessarily be the rate in effect when you use the fuel or claim your fuel tax credits.

However, for heavy vehicles travelling on a public road, you need to use the rate in effect at the beginning of the tax period covered by your BAS.

Fuel tax credit rates are subject to change annually to 1 July 2015, then 6 monthly thereafter due to changes in the carbon price. To find out the latest rates, refer to Fuel tax credit rates and eligible fuels.