Explains when you can claim fuel tax credits if you operate a business and use, package or supply fuels for use other than in an internal combustion engine.
Fuel tax credits provide a credit for fuel tax (excise or customs duty) included in the price of fuel you use in your business activities in:
- machinery
- plant
- equipment
- heavy vehicles.
The only fuels that are not eligible are:
- aviation fuels
- some alternative fuels
- fuels used 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.
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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
- a change in the rates for gaseous fuels - these are liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG)
- a change 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.
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From 1 December 2011, excise or customs duty applies to gaseous fuels - that is, liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG).
Gaseous fuels for transport use are subject to the full rate of duty in most instances. Gaseous fuels delivered for non-transport use only were subject to full automatic remission (LPG & LNG) or exemption (CNG).
Non-transport use includes uses other than in an internal combustion engine of a motor vehicle or vessel or use in a forklift used mainly off-road.
However, from 1 July 2012, LPG and LNG delivered for non-transport use are subject to the carbon charge so that the full automatic remission is replaced with a partial remission of duty.
As a result of these changes, you may be entitled to claim fuel tax credits if you acquire, manufacture or import duty paid gaseous fuels for use in eligible business activities or non-transport activities exempted from the carbon charge.
You may be able to claim fuel tax credits for certain taxable fuels you acquire, manufacture or import for use in your business, where the fuel is used other than in an internal combustion engine.
These fuels include:
- diesel
- heating oil
- kerosene
- fuel oil
- toluene
- mineral turpentine
- white spirit
- liquefied petroleum gas (LPG)
- compressed natural gas (CNG)
- liquefied natural gas (LNG).
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Fuel is taxable fuel if excise or customs duty is required to be paid on it.
You may also be entitled to a fuel tax credit for non-transport CNG that has been subject to the carbon pricing mechanism and used in specified agriculture, fishing or forestry activities, even though no excise or customs duty has been paid on the fuel.
An internal combustion engine is an engine that produces power by burning fuel inside the engine itself.
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Last Modified: Monday, 2 July 2012