Working out your fuel tax credits

Before claiming fuel tax credits on your Business activity statement (BAS), you need to work out your credits and determine what records you need to keep.

The amount you can claim depends on:

• when you acquired the fuel
• what fuel you use
• the activity you use it for.

Separate calculations are required for the different fuel tax credit rates.

Next step:

• Use the fuel tax credit calculator online, to work out your fuel tax credits and get your claim right.

Using the calculation worksheet

When using the fuel tax credits calculation worksheet, follow the three steps below to work out your fuel tax credits.

• Step 1: Work out the eligible quantity
• Step 2: Check which rate applies for the fuel
• Step 3: Work out the amount

Step 1: Work out the eligible quantity

Work out how much fuel (liquid or gaseous, measured in litres or kilograms) you acquired for each business activity, and how much is eligible for fuel tax credits.

Exclude any fuel:

• used in an ineligible activity – for example, in vehicles of 4.5 tonnes GVM or less travelling on public roads
• if the fuel tax credits have already been claimed earlier in the supply chain – for example, claimed by the packager
• used for private purposes
• you acquired, but didn't use because it was lost, stolen or otherwise disposed of.

You can use any apportionment method considered fair and reasonable for your circumstances to work out the quantity of fuel when claiming fuel tax credits.

Common methods to work out the eligible quantity of fuel are:

• constructive method
• deductive method
• percentage use method
• estimated use method.

Standard conversion rates for gaseous fuels are:

• 1 kg of LPG = 1.885 litres of LPG
• 1 mega-joule of CNG = 0.01893 kg of CNG.

See also:

• Calculating eligible fuel quantities
• Practical Compliance Guidelines 2016/8 Fuel tax credits – apportioning fuel for fuel tax credits
• Practical Compliance Guidelines 2016/11 Fuel tax credits – apportioning taxable fuel used in a heavy vehicle with auxiliary equipment
• Fuel Tax Determination 2010/1 Fuel tax: is apportionment used when determining total fuel tax credits in calculating the net fuel amount under section 60-5 of the Fuel Tax Act 2006
• Excise (Mass of CNG) Determination 2012 (No. 1)External Link for approved methods to convert cubic metres or mega joules to kilograms.

Step 2: Check which rate applies for the fuel

When calculating your fuel tax credits, including fuel used in heavy vehicles, you need to use the rate that applied when:

• you acquired the fuel
• you imported the fuel
• you entered the fuel for home consumption (into the Australian domestic market) if you manufactured the fuel.

See also:

• Rates – business

Step 3: Work out the amount

Work out the amount of your fuel tax credits in dollars.

Do this by multiplying the eligible quantity of fuel by the relevant fuel tax credit rate when you acquired the fuel (step 1 × step 2). You must divide the result by 100 to convert it into dollars.

When you have worked out the amount for the relevant BAS period, add the dollar amounts, then claim the whole dollar amount by recording it at label 7D on your BAS.

Next step:

• Claiming fuel tax credits