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  • Other fuel blends

    You may be using a fuel blend that is not invoiced as one of the commonly used blends of B5, B20 or E10, for example B30. The fuel tax credit rate will depend on the blend ratio.

    From 1 July 2016, if you:

    • import and pay customs duty on biodiesel or fuel ethanol and then use it in blends not invoiced as B5, B20 or E10, you can claim fuel tax credits on all the components of the blend. For fuel tax credit purposes these fuels are treated as if they are manufactured in Australia. The fuel tax credit rate for the imported biodiesel and ethanol component is the excise duty rate that applies to domestic biofuel blends.
    • use a blend that contains more than 20% biodiesel or more than 10% ethanol, you can claim fuel tax credits on both components of the blend.

    You must have documentation showing the proportion of each fuel in the blend before you work out your fuel tax credits.

    To work out your fuel tax credits for these blends, you must first work out the proportion of eligible fuel (for example, diesel or petrol) and then multiply this amount by the applicable fuel tax credit rate for each component of the blend.

    For example, if you acquire for business use:

    • fuel ethanol invoiced as E85, you can claim fuel tax credits at the E85 rate in the rates table under 'Blended fuels'
    • fuel ethanol sold as E85, but you have documentation (for example, from the supplier) that shows the fuel contains 20% petrol and 80% ethanol, you can claim fuel tax credits for each component using the rate that applies
    • a biodiesel blend and the invoice states it is a blend containing 40% biodiesel and 60% diesel, you can claim fuel tax credits for each component of the blend using the applicable rate.

    Special rules apply to other blends, such as blends used for heavy vehicles travelling on public roads.

    See also:

    Example: Use of a B30 blend in machinery on a construction site

    Fuel tax credit rates change regularly. Check the rates before completing your calculation.

    Keyser uses a blend of 30% biodiesel and 70% diesel in his machinery on a construction site. He has sufficient documentation confirming this blend ratio.

    In July 2021, Keyser purchases 10,000 litres of that fuel for use in his machinery.

    Keyser is entitled to claim fuel tax credits for both the diesel and biodiesel portion of the fuel he uses in his machinery on the construction site.

    The rate for diesel in July 2021 was 42.7 cents per litre and the rate for biodiesel was 8.5 cents per litre.

    He calculates the fuel tax credits for this fuel as follows:

    Fuel tax credits on the diesel portion

    (10,000 litres × 70%) × $0.427 per litre = $2,989.00

    Fuel tax credits on the biodiesel portion

    (10,000 litres × 30%) x $0.085 per litre = $255.00

    Fuel tax credit entitlement

    $2,989.00 + $255.00 = $3,244.00

     

    End of example
      Last modified: 17 Jun 2021QC 25200