Fuel tax credits for business

Blended fuels

Diesel blends

Your fuel tax credit is, in part, based on the effective fuel tax paid on the particular fuel. Generally, no effective fuel tax is paid on biodiesel, but special rules apply to diesel blends containing 20% biodiesel or less.

The effective fuel tax paid is calculated as if the fuel you are using is entirely diesel, if both of the following apply:

• your fuel is a blend of diesel and biodiesel
• it contains 20% or less biodiesel (eg, B20).

Petrol blends

Your fuel tax credit is, in part, based on the effective fuel tax paid on the particular fuel. Generally, no effective fuel tax is paid on fuel ethanol, but special rules apply to petrol blends containing 10% ethanol or less.

The effective fuel tax paid is calculated as if the fuel you are using is entirely petrol, if both of the following apply:

• your fuel is a blend of petrol and ethanol
• it contains 10% or less ethanol (eg, E10).

Other blends

For other blends of two or more taxable fuels, the effective fuel tax paid is calculated based on the proportion of each taxable fuel.

From 1 July 2012 the amount of fuel tax credit you can claim for blends may be affected by the carbon charge. For more information, refer to Fuel tax credit rates and eligible fuels.

For more information about fuel blends, refer to Fuel tax credits - fuel blends

Sections within Eligible fuels

• Liquid fuels
• Gaseous fuels
• Blended fuels
• Fuels which are not eligible