Excise and biodiesel manufacture

Fuel tax credits

You may be eligible to claim fuel tax credits for fuel you acquire, manufacture or import for use in your business activities if all of the following apply:

• you are registered for GST
• you are undertaking an eligible activity
• you use a taxable fuel, including diesel, petrol and other fuels such as heating oil.

Although you may be entitled to fuel tax credits for 100% biodiesel, the amount of credit is generally nil. This is because the cleaner fuels grant must be deducted when calculating the fuel tax credit amount on biodiesel.

If you use a blended fuel containing biodiesel, the fuel tax credits you can claim will depend on the type of blend and the activity you use it in. Fuel tax credits for blends of diesel and biodiesel containing 20% or less biodiesel will not be reduced by cleaner fuels grant amounts already claimed. However, fuel tax credits on your blended fuel may be reduced by a carbon charge, which is an amount equal to the price of carbon emissions from the use of the fuel.

	Diesel heavy vehicles may have to meet certain environmental criteria to be able to claim fuel tax credits.
	For more information refer to: Fuel tax credits - fuel blends Fuel tax credit rates and eligible fuels.

Sections within Credits and grants

• Cleaner fuels grants scheme
• Fuel tax credits
• Energy grants credits scheme