You can claim fuel tax credits for taxable fuel you use in an agricultural activity if the purpose of your business is to obtain produce for sale (or it directly supports such a business), including:
- cultivating or gathering in crops
- cultivating the soil
- rearing livestock1
- viticulture, horticulture, pasturage or apiculture
- transporting livestock1 other than on a public road2 - for example, moving for agistment
- hunting and trapping
- removing waste from an agricultural activity.
The following activities are also eligible if they are carried out on an agricultural property:
- drilling bores
- building or maintaining firebreaks
- fencing
- frost abatement
- controlling weeds, pests or disease
- building or maintaining sheds, pens, silos, silage pits, dams, water tanks, troughs, channels, irrigation systems and drainage systems
- planting and tending trees not intended for felling
- constructing earthworks, including dams, levee banks, windbreaks, contour banking and levelling or grading land
- conserving soil and water
- milking, shearing and mustering stock
- breeding animals for working the land, such as draught horses
- breeding animals for livestock activities, such as stockhorses or working dogs
- baling hay on the agricultural property where the hay was cut3
- service, maintenance and repairing business vehicles or equipment
- storing or packing produce
- preventing produce deterioration
- disposing of waste from an agricultural activity
- use of the fuel for a residential premises by the farmer for themselves and other residents of the premises for meeting their domestic requirements.
The following activities are also eligible for fuel tax credits at the full rate if they are carried out on, or adjacent to, an agricultural property:
- pumping and supplying water solely for use in agriculture
- building or maintaining firebreaks
- fire fighting.
Example: Agriculture
Siena uses a diesel-powered tractor to cart materials around her vineyard. The fuel she uses for this activity is eligible for fuel tax credits at the rate of 38.143 cents per litre.
Siena also uses a petrol-fuelled ride-on mower and whipper-snipper to maintain her vineyard. From 1 July 2008, Siena can claim fuel tax credits at 38.143 cents per litre for the fuel she uses in this equipment.
As Siena uses fuel for an activity exempt the carbon charge, she is able to claim the full amount of fuel tax credit and continues to use the rate of 38.143 cents per litre after 1 July 2012.
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For more information and a comprehensive list of agricultural activities:
- refer to Fuel Tax Ruling FTR 2012/1 Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in carrying on an enterprise involving 'agriculture' as defined in section 43-15 of the Fuel Tax Act 2006
- phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday.
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Notes:
1. For the purposes of fuel tax credits, livestock includes any animal raised to produce food, fibres, skins, fur or feathers or for use in farming the land.
2. Transporting livestock on a public road may be eligible under the road transport activity.
3. If the hay is baled on the agricultural property where it was grown, it does not matter who actually performs the baling.
Sections within Eligible activities
Last Modified: Wednesday, 12 December 2012