Fuel tax credits for business

Forestry

Refer to Fuel tax credit rates and eligible fuels for the rates from 1 July 2012 for specified forestry activities. You need to use the rate that applied when you acquired the fuel. These specified forestry activities are currently exempt from the carbon charge. If your activity is not listed here, it may be eligible under another activity, such as Other off-road activities where the fuel is combusted.

If you are undertaking commercial forestry operations, you can claim for taxable fuel (for example, diesel, petrol or duty paid gaseous fuels) you use for any of the following activities:

• planting or tending trees in a forest or plantation that is intended for felling
• felling or thinning trees in a forest or plantation
• transporting, milling or processing trees in the forest or plantation in which they were felled - if the transport is not on a public road
• transporting timber to a sawmill or chip mill that is outside the forest or plantation but inside Australia - if the transport is not on a public road
• milling timber at a sawmill or chip mill outside the forest or plantation
• constructing and maintaining roads in a forest or plantation, if the roads are integral to eligible forestry activities - this does not include quarrying activities or transporting any materials you use for road building.

Example: Forestry

Forest First Pty Ltd has been claiming fuel tax credits at 38.143 cents per litre for the diesel they acquired prior to 1 July 2012 for use in machinery constructing forestry roads. As this activity is exempt from the carbon charge, they continue to use the rate of 38.143 cents per litre after 1 July 2012.

Forest First Pty Ltd also use diesel in machinery used for slicing timber into veneer and they had been claiming 19.0715 cents per litre for the diesel acquired prior to 1 July 2012, they can claim 31.933 cents per litre. This activity is subject to the carbon charge.

For more information and a comprehensive list of forestry activities: refer to Fuel Tax Ruling FTR 2012/2 Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in carrying on an enterprise involving 'forestry' as defined in section 43-75 of the Fuel Tax Act 2006 phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday.

Sections within Eligible activities

• Road transport
• Agriculture
• Fishing
• Forestry
• Other off-road activities where the fuel is combusted
• Non-combustible use
• Packaging or supplying fuel