Save money on your business fuel costs

Media release 2008/29

From 1 July 2008 fuel tax credits will be expanding which means more businesses than ever will be able to reduce their business fuel costs.

Many businesses will be able to claim fuel tax credits for the first time, and many others will be able to claim additional fuel tax credits.

Tax Commissioner Michael D’Ascenzo said until now businesses have only been able to claim fuel tax credits for fuel used in heavy vehicles, such as trucks, and specific activities, such as primary production.

“Businesses should check now if they are eligible from 1 July 2008 to claim fuel tax credits for the majority of fuel used in their business – whether it’s used in blower vacuums and backhoes, or chainsaws and concrete mixers,” Mr D’Ascenzo said.

“Many businesses may not know they could be eligible to claim fuel tax credits, so we’re hoping to spread the word and provide those businesses with the support and information they need.”

The only fuels that are not eligible are fuels used in cars or other light weight vehicles travelling on public roads, alternative fuels and aviation fuels.

The following information can help eligible businesses claim fuel tax credits:

1. Register now

Phone the Tax Office on 13 72 26 (24 hours a day, seven days a week) to register for fuel tax credits. Make sure you have your Australian business number and business tax file number handy when you call. You need to be registered for GST to claim fuel tax credits.

2. A new label on your business activity statement (BAS)

Once you are registered an additional label will be added to your BAS and the Tax Office will send you information on how to claim.

3. Keeping records

Simply keep any records that prove you bought fuel and how it was used for your business.

How much you can claim depends on how you use the fuel. For example a landscaping business that uses petrol in their whipper snipper and bobcat would be able to claim fuel tax credits at around 19 cents per litre. So, for every 100 litres of eligible fuel, they would claim around $19 in fuel tax credits.

For more information on how much you can claim, or to find out if you’re eligible, visit www.ato.gov.au/fuelschemes

Last Modified: Thursday, 12 June 2008