Eligible fuels are taxable because fuel tax (excise or customs duty) is required to be paid on it. You can claim fuel tax credits for eligible liquid or gaseous fuels.
Eligible liquid fuels are:
- other fuels, such as
- mineral turpentine
- white spirit
- heating oil
- some solvents.
You can claim fuel tax credits for fuel blends. The rate you can claim will depend on the amount of biodiesel or ethanol in each blend.
For some business activities (for example, packaging or fuel used for domestic home heating), you can only claim for certain taxable fuels.
Fuel used in aircraft
Although you cannot claim fuel tax credits for aviation fuels (aviation gasoline and aviation kerosene) - if you acquire diesel or petrol and use it in an aircraft as part of your business activities, there may be circumstances when you can claim fuel tax credits.
If you are unsure whether you can claim fuel tax credits for fuel used in your aircraft, you can phone us.
You may be able to claim fuel tax credits for gaseous fuels used in your business activities and acquired from 1 December 2011.
Gaseous fuels are:
- liquefied petroleum gas (LPG)
- liquefied natural gas (LNG)
- compressed natural gas (CNG).
Gaseous fuels are sold as either:
- transport gaseous fuels, or
- non-transport gaseous fuels.
Transport gaseous fuels are duty paid and include:
- LPG or LNG intended for use in an internal combustion engine of a motor vehicle or vessel (boat etc.), either directly or by filling another tank connected to such an engine
- CNG that is imported or compressed for use as a fuel in a motor vehicle
- all gaseous fuels for mixed use (that is, both transport and non-transport use) or when the end use is unknown.
Non-transport gaseous fuels are not duty paid and include:
- LPG and LNG delivered only for use other than in an internal combustion engine of a motor vehicle or vessel (for example, in residential heating or burner applications) or for use in forklifts.
- CNG imported or compressed only for use in forklifts or not for use as a fuel in a motor vehicle
- CNG compressed at a residential premises (including for use in a motor vehicle) using equipment capable of compression at a rate not more than 10 kg of natural gas per hour and not for sale.
The sale of non-transport gaseous fuel will contain the following on the invoice - 'Not to be used, or supplied, for transport use. Penalties apply'.
You can claim fuel tax credits for eligible fuels – liquid or gaseous fuels.