Fuel tax credits for individuals, businesses and others
Fuel tax (excise or customs duty) is included in the price of certain fuels, including diesel, petrol, heating oil, kerosene and fuel oil. You may be entitled to claim a fuel tax credit if you use these fuels in undertaking eligible activities.
You cannot claim for alternative fuels, such as:
- liquefied petroleum gas (LPG)
- compressed natural gas (CNG)
- liquefied natural gas (LNG)
- ethanol
- biodiesel.
Domestic electricity generation
You can claim fuel tax credits for any taxable fuel, such as diesel or petrol, you acquire for use in generating electricity for domestic purposes. The fuel can be used to generate electricity using a motor or generator, for yourself or others.
'Domestic purposes' means for a home, house or household. This includes a:
- static home, such as a single house, duplex, town house, unit or cabin
- relocatable home, such as a demountable home
- marine home, such as a houseboat
- mobile home, such as a caravan or motorhome.
Example
Donna's home was destroyed by fire and she no longer has access to an electricity supply. She and her family are living in a caravan on the land while their home is being rebuilt. Donna uses a generator to supply the caravan with electricity. As the caravan is now considered her home, she can claim fuel tax credits for the fuel used in generating electricity for domestic purposes.
Fuel used in a business
Businesses that are registered for GST can claim credits for the fuel tax included in the price of fuel used in eligible business activities to run machinery, plant, equipment and heavy vehicles.
Example
Peter is a sole trader. During the floods, the basement of his business premises - where he kept a lot of stock - filled with water and, for safety, his electricity supply was disconnected. Peter hired a generator to operate a pump to clear the water from his basement. He can claim fuel tax credits for the fuel used in the generator because it was for business purposes.
Operating emergency vehicles or vessels
If you operate a non-profit organisation that has chosen not to register for GST because its GST turnover is less than $150,000, you can still claim fuel tax credits on a fuel tax credits claim form providing you meet all the following requirements:
- only claim for fuel you use to operate emergency vehicles or vessels
- are a non-profit organisation at the time you acquire, manufacture or import the fuel
- acquire, manufacture or import the fuel for use in a vehicle or vessel that
- provides emergency services
- is clearly identifiable as such.
Last Modified: Monday, 6 February 2012