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    Calculating eligible quantities and record keeping

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    To correctly work out your fuel tax credits and support your claims, you must keep records that show the amount of fuel you acquire for your business and how you use it.

    Find out about:

    Calculating eligible quantities

    If you use one or more types of fuel in one or more activities you should work out the quantity of each fuel type used in each activity separately. You may apply a different calculation method to each of these eligible activities and fuel types. Remember to apply the correct rate for each activity.

    Calculation methods

    Table 1: Calculation methods – Basic

    Basic methods

    When to use

    Constructive method

    If you prefer to add up the eligible quantity of each type of fuel.

    Deductive method

    If you prefer to deduct your ineligible fuel from the quantity of fuel you acquired.

    Table 2: Calculation methods – Other

    Other methods

    When to use

    Percentage use method

    If your eligible fuel use is consistent over time.

    Alternative percentage use method 

    If you have medium-to-large fleets of vehicles or equipment.

    Estimated use method

    If the amount of fuel you are likely to claim in a financial year is less than $5,000.

    Average fuel consumption rate method 

    If you keep records of the hours your equipment is used.

    See also:

    Records you need to keep

    The records you currently keep for your business will generally be enough to support your claims if they show that you did all of the following:

    • acquired the fuel
    • used it in your business
    • applied the correct rate to the correct activity when calculating your claim.

    Your records must clearly show all of the following:

    • the activity you are claiming for
    • where the activity occurred
    • the type of fuel and how much was used in each activity.

    For example, if you are claiming for street sweeping, you must include:

    • the type of fuel used
    • what proportion you are claiming for travel and what proportion for the street cleaning
    • if the activity occurred in the metropolitan area or not.

    Your records must be in English (or easily translated into English) and you must keep them for five years after you make the claim as we may ask to examine them within this period. You do not need to send your records to us unless we ask you to.

    See also:

      Last modified: 18 Mar 2014QC 26573