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  • Blends used for heavy vehicles travelling on public roads

    If you use a blended fuel in a heavy vehicle for travelling on public roads, you must work out the road user charge (RUC) on the entire quantity of fuel when calculating your fuel tax credits. The RUC applies to the whole quantity of fuel used for travelling on public roads even if you are only entitled to claim fuel tax credits for a portion of the fuel blend.

    Heavy vehicles have a GVM greater than 4.5 tonnes. Diesel vehicles acquired before 1 July 2006 can equal 4.5 tonnes GVM.

    Fuel you use to power auxiliary equipment of a heavy vehicle travelling on public roads (such as powering the refrigeration unit of a refrigerated trailer) is not reduced by the RUC. You can claim fuel tax credits at the rate for the fuel blend you use in your business.

    See also:

    Example: Use of a B30 blend in a heavy vehicle

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

    Raj uses a blend of 30% biodiesel and 70% diesel in his trucks for travelling on public roads. He has sufficient documentation confirming this blend ratio.

    In July 2021, Raj purchases 10,000 litres of that blend for use in his trucks.

    Raj is entitled to claim fuel tax credits for the diesel and biodiesel portion of the fuel he uses in his trucks for travelling on public roads. The rate for diesel in July 2021 is 42.7 cents per litre and the rate for biodiesel is 8.5 cents per litre. Raj must calculate the RUC on the entire quantity of fuel, including the biodiesel portion. From 1 July 2021, the RUC is 26.4 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%) × $0.085 per litre = $255.00

    RUC on the entire fuel

    10,000 litres × $0.264 per litre = $2,640.00

    Fuel tax credit entitlement

    ($2,989.00 + $255.00) − $2,640.00 = $604.00

    There may be circumstances where the RUC, when calculated on the entire quantity of fuel, exceeds any fuel tax credit entitlement. In those circumstances the fuel tax credit amount is nil.

    End of example
      Last modified: 17 Jun 2021QC 25200