Show download pdf controls
  • Powering auxiliary equipment

    You can claim fuel tax credits for liquid fuels and gaseous fuels you use to power auxiliary equipment in your heavy vehicles. These are equipment and mechanisms unrelated to a vehicle’s travel on public roads, for example:

    • the mixing barrel of a concrete truck
    • garbage bin lifters and compacting mechanisms of a garbage truck
    • the refrigeration unit of a vehicle that transports temperature-sensitive goods
    • air-conditioning of a commercial bus or coach for passenger comfort
    • elevated work platforms.

    The fuel used to power the auxiliary equipment may be sourced from a separate fuel tank or from the tank that fuels the main engine. The auxiliary equipment may also take its power from the main engine (known as 'power take-off'), which in turn increases the fuel used.

    The fuel tax credit rate for this activity is not reduced by the road user charge – even when the fuel is used in a heavy vehicle travelling on public roads.

    When calculating fuel tax credits for fuel used in vehicles with auxiliary equipment, you need to apportion the fuel used for:

    • powering the heavy vehicle with auxiliary equipment, and
    • other activities (such as travelling on public roads, off public roads and on work sites).

    You can use any apportionment method considered fair and reasonable for your circumstances.

    However, if you use the simplified method to calculate your fuel tax credits, you won't need to do a separate calculation for fuel used while the vehicle is off public roads (such as for idling or propelling the vehicle, and use of auxiliary equipment). The percentage you use to work out your fuel tax credits will cover this use. You also won't need to do complex calculations or sample testing when you use this method. See Table 1 for the percentages you can use to work out your claim.

    Next steps:

    See also:

    Amending earlier claims for auxiliary equipment

    You can amend your earlier fuel tax credit claims for fuel used to power the auxiliary equipment of heavy vehicles travelling on public roads, if all of the following apply:

    • you claimed for liquid fuels using the rate 'in a heavy vehicle for travelling on public roads' that was reduced by the road user charge, or you didn't claim for gaseous fuels because the road user charge reduced your entitlement to nil
    • the amendment is within the time limit – four years from the day after you were required to lodge the BAS for the tax period in which the fuel was acquired.

    To work out the quantity of fuel used to power the auxiliary equipment for each BAS period, you can use any apportionment method considered fair and reasonable for your circumstances.

    Next steps:

    See also:

    Amending claims for liquid fuels

    Follow the steps below to amend a claim for liquid fuels:

    • Step 1: Work out the quantity of fuel used to power the auxiliary equipment of the heavy vehicle travelling on public roads for each BAS period.
    • Step 2: Multiply the quantity of fuel (from Step 1) by the fuel tax credit rate 'To power auxiliary equipment of a heavy vehicle travelling on public roads' for that period.
    • Step 3: Multiply the same quantity of fuel (from Step 1) by the fuel tax credit rate you originally used when calculating your fuel tax credits for each BAS period (rate reduced by the road user charge).
    • Step 4: Work out the amount of your amendment for each BAS period as follows: Step 2 minus Step 3.
    • Step 5: Add the amounts from each BAS period (from Step 4) to get the total amount of your amendment. Include your amendment at label 7D on your BAS.

    Example: Step 4: Work out amendment amount for a BAS period

    Paul's transport business supplies goods to various stores in 12-tonne trucks with refrigerated trailers.

    On 10 July 2017, Paul purchased 10,000 litres of diesel for use in his trucks. When he originally worked out his fuel tax credits he used the rate 14.3 cents per litre for the entire amount of fuel. This rate is reduced by the road user charge.

    Paul worked out 10% of that fuel was used to power the refrigeration unit. He can submit an amendment to claim back the road user charge on 10% of the fuel used in his trucks – 1,000 litres.

    Paul refers to the rates table and works out the amount of his amendment as follows:

    Step 1: 1,000 L × $0.401 = $401.00 (this is the amount he should have claimed)

    Step 2: 1,000 L × $0.143 = $143.00 (this is the amount he has already claimed)

    Step 3: $401.00 − $143.00 = $258.00 (this is the additional amount he can claim)

    Paul can amend his BAS for the quarter ended March 2019 (his current BAS) by including $258 at label 7D.

    End of example

    Claiming for gaseous fuels

    Follow the steps below to claim for gaseous fuels:

    • Step 1: Multiply the fuel tax credit rate that applied by the quantity of fuel used to power the auxiliary equipment for each BAS period.
    • Step 2: If you're claiming for multiple BAS periods, add the amounts from each BAS period together to get the total amount of your claim. Include this amount at label 7D on your BAS.

    See also:

      Last modified: 30 Jan 2019QC 44648