• Fuel blends

    You can claim fuel tax credits for fuel blends. The rate you can claim depends on the amount of biodiesel or fuel ethanol in each blend.

    As at 30 June 2016, the excise duty rates for biodiesel and fuel ethanol were nil for biodiesel and fuel ethanol manufactured in Australia. From 1 July 2016, increased excise duty rates took effect for biodiesel and fuel ethanol manufactured in Australia.

    In the 2016-17 financial year:

    • blends containing no more than 20% biodiesel are still considered to be 100% diesel
    • blends containing no more than 10% fuel ethanol are still considered to be 100% petrol
    • for all other blends, the biodiesel and fuel ethanol component of the blend are eligible for fuel tax credits depending on the excise duty paid on them.

    Common blends

    Diesel blends

    Blends of biodiesel and diesel with 20% or less biodiesel (for example B5 or B20), are considered to be 100% diesel and you can claim fuel tax credits at the diesel rate on the entire amount.

    Petrol blends

    Blends of fuel ethanol and petrol with 10% or less ethanol (for example E10) are considered to be 100% petrol and you can claim fuel tax credits at the petrol rate on the entire amount.

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      Last modified: 30 Jun 2016QC 25200