Show download pdf controls
  • 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

    Activities where the fuel is combusted

    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
    • Road transport – that is, vehicles with a GVM greater than 4.5 tonnes travelling on public roads (diesel vehicles you acquired before 1 July 2006 can equal 4.5 tonnes GVM)
    • Specified off-road activities in      
    • Other off-road activities – for example  
      • mining
      • marine and rail transport
      • nursing and medical services
      • burner applications
      • electricity generation by commercial generator plant, stationary generator or a portable generator
      • construction
      • manufacturing
      • wholesale/retail
      • property management
      • landscaping
       

    Off-road activities include vehicles travelling on private roads.

    See also:

    Road transport

    For the current and previous years' rates for heavy vehicles travelling on public roads, refer to Fuel tax credit rates.

    For fuel you acquired from 1 July 2012 to 30 June 2014 and used:

    • in heavy vehicles for travelling on public roads, you need to use the rate in effect at the beginning of the tax period covered by your BAS (from 1 July 2014, rates will change regularly and you will need to use the rate in effect when you acquired the fuel)
    • to power auxiliary equipment of a heavy vehicle travelling on public roads, you need to use the rate in effect on the day you acquired the fuel.

    If your activity is not listed here, such as fuel used in a vehicle on a private road, it may be eligible under another activity with a different fuel tax credit rate.

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

    The GVM of a vehicle is the GVM accepted by the authority that registered the vehicle. Trailers cannot be included in the GVM of a rigid vehicle. For prime movers, the GVM is the gross combination mass – that is, the mass of the vehicle and the trailer.

    You can claim fuel tax credits for taxable fuels you use in a heavy vehicle, including emergency vehicles, travelling on public roads if the vehicle meets all the following conditions:

    • it is used in carrying on a business
    • it has a GVM greater than 4.5 tonnes – diesel vehicles acquired before 1 July 2006 can equal 4.5 tonnes GVM
    • diesel vehicles meet any one of the environmental criteria.

    The rate you use when working out your fuel tax credit amounts depends on the fuel used and whether you use it:

    See also:

    Fuel used for travelling on public roads

    Fuel is used for travelling when it is used for:

    • propelling the vehicle along the public road, including stopping or idling in the course of the journey
    • powering the functions of the vehicle that are for the purpose of travelling, such as the use of lights, brakes, power-steering and windscreen wipers.

    The fuel tax credit rate for this fuel is reduced by the road user charge, which is subject to change. It was not reduced by the carbon charge, which applied from 1 July 2012 to 30 June 2014.

    It does not include fuel used for purposes unrelated to a vehicle's movement on a public road.

    Transport gaseous fuels – that is, LPG, LNG or CNG – used in heavy vehicles for travelling on public roads are eligible for fuel tax credits. However, the road user charge currently reduces any fuel tax credits to nil for these fuels where it is used for travelling on a public road.

    You can convert the road user charge rate to cents per kilogram for LNG and CNG by multiplying it by 1.333.

    Example: Road user charge

    Jim’s Removalists operates four 5-tonne diesel trucks. All the fuel Jim acquires for the trucks is used for travelling on public roads.

    In May 2013, Jim’s Removalists acquired 10,000 litres of diesel to use in their trucks. The fuel tax credit rate for heavy vehicles in May 2013 was 12.643 cents per litre – that is, 38.143 cents per litre, minus the road user charge of 25.5 cents per litre.

    When lodging his monthly BAS for May 2013, Jim’s fuel tax credit claim was $1,264. This was worked out by fuel acquired in May 2013:

    • 10,000 litres × 12.643 cents per litre = $1,264.30.

    On 1 July 2013, the road user charge increased, which meant the fuel tax credit rate for heavy vehicles changed to 12.003 cents per litre.

    In July 2013, Jim’s Deliveries acquired another 10,000 litres of diesel. When lodging his monthly BAS for July 2013, Jim’s fuel tax credit claim was $1,200. This was worked out by fuel acquired in July 2013:

    • 10,000 litres × 12.003 cents per litre = $1,200.30.
    End of example

    Fuel used to power auxiliary equipment

    Liquid or gaseous fuel you use to power auxiliary equipment of a heavy vehicle travelling on public roads is not reduced by the road user charge or the carbon charge. This fuel use is considered to be unrelated to a vehicle’s movement along a public road, such as powering:

    • 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
    • the air-conditioning of a commercial bus or coach for passenger comfort
    • winches and towing equipment of a tow truck.

    The fuel that is 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.

    Fuel used in auxiliary equipment does not include fuel you use in mobile equipment, such as forklifts and bobcats. This type of plant or equipment may be eligible under other off-road activities.

    See also:

    • Heavy vehicles  
    • FTR 2008/1 Fuel tax: vehicle's travel on a public road that is incidental to the vehicle's main use and the road user charge

    Agriculture

    For the rates for specified agricultural activities, refer to Fuel tax credit rates. You need to use the rate that applied when you acquired the fuel.

    These specified agricultural activities were exempt from the carbon charge. Fuel tax credits for non-transport gaseous fuels acquired from 1 July 2012 to 30 June 2014 and used in specified agriculture activities were equal to the carbon charge amount.

    If your activity is not listed here, you may be eligible for a fuel tax credit under another activity with a different fuel tax credit rate, such as Other off-road activities.

    You can claim fuel tax credits for taxable fuel you use in an agricultural activity if the purpose of your business is to obtain produce for sale (or it directly supports such a business), including:

    • cultivating or gathering in crops
    • cultivating the soil
    • rearing livestock (any animal raised to produce food, fibres, skins, fur or feathers or for use in farming the land)
    • viticulture, horticulture, pasturage or apiculture
    • transporting livestock (any animal raised to produce food, fibres, skins, fur or feathers or for use in farming the land) ) – for example, moving livestock for agistment – other than on a public road (which may be eligible under the road transport activity)
    • hunting and trapping
    • removing waste from an agricultural activity.

    The following activities are also eligible if they are carried out on an agricultural property:

    • drilling bores
    • building or maintaining firebreaks
    • fencing
    • frost abatement
    • controlling weeds, pests or disease
    • building or maintaining sheds, pens, silos, silage pits, dams, water tanks, troughs, channels, irrigation systems and drainage systems
    • planting and tending trees not intended for felling
    • constructing earthworks, including dams, levee banks, windbreaks, contour banking and levelling or grading land
    • conserving soil and water
    • milking, shearing and mustering stock
    • breeding animals for working the land, such as draught horses
    • breeding animals for livestock activities, such as stockhorses or working dogs
    • baling hay on the agricultural property where the hay was cut
    • service, maintenance and repairing business vehicles or equipment
    • storing or packing produce
    • preventing produce deterioration
    • disposing of waste from an agricultural activity
    • use of the fuel for a residential premises by the farmer for themselves and other residents of the premises for meeting their domestic requirements.

    The following activities are also eligible for fuel tax credits at the full rate if they are carried out on, or adjacent to, an agricultural property:

    • pumping and supplying water solely for use in agriculture
    • building or maintaining firebreaks
    • fire fighting.

    Example: Agriculture

    Claudia uses a diesel-powered tractor to cart materials around her vineyard. Claudia also uses a petrol-fuelled ride-on mower and whipper snipper to maintain her vineyard.

    Because Claudia uses fuel for an activity exempt from the carbon charge, she can claim the full amount of fuel tax credit.

    End of example

    See also:

    • FTR 2012/1W Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in carrying on an enterprise involving 'agriculture' as defined in section 43-15 of the Fuel Tax Act 2006.

    Fishing

    For the rates for specified fishing activities, refer to Fuel tax credit rates. You need to use the rate that applied when you acquired the fuel.

    These specified fishing activities were exempt from the carbon charge. Fuel tax credits for non-transport gaseous fuels acquired from 1 July 2012 to 30 June 2014 and used in specified fishing activities were equal to the carbon charge amount.

    If your activity is not listed here, you may be eligible for a fuel tax credit under another activity with a different fuel tax credit rate, such as Other off-road activities. If you are undertaking commercial fishing operations, you can claim for taxable fuel (for example, diesel, petrol or gaseous fuels) you use for any of the following activities, if these activities are not connected with sport, recreation or tourism:

    • taking, catching, capturing of fish (freshwater and saltwater fish, including crustaceans, molluscs and any other living resource sourced from the sea, seabed, freshwater or the bed below freshwater)
    • processing fish on board vessels
    • fish farming
    • constructing ponds and tanks or other structures to contain fish to be farmed, as long as this is done by the fish farmer or a contractor or subcontractor to the farmer
    • pearling
    • operating a dedicated mother vessel in connection with eligible fishing operations
    • sailing a vessel to or from a port for the purpose of refitting or repairing the vessel or its equipment
    • undertaking trials connected with the repair or refit.

    Example: Fishing

    Boris is a commercial fisherman and he owns five petrol-driven vessels for off-shore fishing. Because Boris uses fuel for an activity exempt from the carbon charge, he can claim fuel tax credits at 38.143 cents per litre for the petrol he uses in his fishing business.

    Boris also uses a petrol-driven forklift to load his fish onto trucks for delivery to the local fish markets. Boris can claim fuel tax credits at 32.347 cents per litre for petrol he acquires from 1 July 2013 to 30 June 2014 for use in the forklift. The use of the forklift by Boris is not an exempt activity and the carbon charge applies to the fuel used in his forklift.

    End of example

    See also:

    • FTR 2012/3W Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in carrying on an enterprise involving 'fishing operations' as defined in section 43-70 of the Fuel Tax Act 2006.

    Forestry

    For the rates for specified forestry activities, refer to Fuel tax credit rates. You need to use the rate that applied when you acquired the fuel.

    These specified forestry activities were exempt from the carbon charge. Fuel tax credits for non-transport gaseous fuels acquired from 1 July 2012 to 30 June 2014 and used in specified forestry activities were equal to the carbon charge amount.

    If your activity is not listed here, you may be eligible for a fuel tax credit under another activity with a different fuel tax credit rate, such as Other off-road activities.

    If you are undertaking commercial forestry operations, you can claim for taxable fuel (for example, diesel, petrol or gaseous fuels) you use for any of the following activities:

    • planting or tending trees in a forest or plantation that is intended for felling
    • felling or thinning trees in a forest or plantation
    • transporting, milling or processing trees in the forest or plantation in which they were felled – if the transport is not on a public road
    • transporting timber to a sawmill or chip mill that is outside the forest or plantation but inside Australia – if the transport is not on a public road
    • milling timber at a sawmill or chip mill outside the forest or plantation
    • constructing and maintaining roads in a forest or plantation, if the roads are integral to eligible forestry activities – this does not include quarrying activities or transporting any materials you use for road building.

    Example: Forestry

    Forest First Pty Ltd has been claiming fuel tax credits at 38.143 cents per litre for the diesel they acquired for use in machinery constructing forestry roads. This activity is exempt from the carbon charge.

    Forest First Pty Ltd also use diesel in machinery used for slicing timber into veneer. This activity is not a specified forestry activity and is subject to the carbon charge.

    Forest First Pty Ltd can claim fuel tax credits at 31.622 cents per litre for diesel they acquire from 1 July 2013 to 30 June 2014 for use in machinery to slice timber.

    End of example

    See also:

    • FTR 2012/2W Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in carrying on an enterprise involving 'forestry' as defined in section 43-75 of the Fuel Tax Act 2006

    Other off-road activities

    Fuel tax credits for these activities were reduced by an amount of carbon charge relevant to the fuel. Carbon charge amounts changed annually and applied during the period 1 July 2012 to 30 June 2014.

    For the latest rates for these activities, refer to Fuel tax credit rates and eligible fuels. You need to use the rate that applied when you acquired the fuel.

    If your activity is not listed here, you may be eligible for a fuel tax credit under another activity with a different fuel tax credit rate.

    Examples of other off-road activities

    The following are examples of off-road activities – that is, activities not undertaken on a public road – where the fuel is combusted (Note: it is not a complete list):

    • mining
    • marine and rail transport
    • nursing and medical services
    • burner applications
    • electricity generation by commercial generator plant, stationary generator or a portable generator
    • construction
    • manufacturing
    • wholesale/retail
    • property management
    • landscaping
    • dredging
    • panel beating
    • greenhouse heating
    • in cement kilns
    • quarrying
    • in industrial furnaces.

    Example: Quarrying

    Michael's Sand Supplies Pty Ltd quarries sand to use in landscaping. He claims fuel tax credits for the diesel he uses in his excavators. From 1 July 2012, this activity is subject to the carbon charge.

    For diesel acquired from 1 July 2012 to 30 June 2013, Michael can claim 31.933 cents per litre for this activity – which is the full fuel tax credit rate of 38.143 cents minus the carbon charge for diesel.

    Michael can claim 31.622 cents per litre for diesel he acquires from 1 July 2013 to 30 June 2014.

    Example: Generating electricity

    Natalie operates a caravan park and supplies electricity for residents to use. Prior to 1 July 2012, she had been claiming fuel tax credits at the rate of 38.143 cents per litre for the diesel she used in her stationary generator.

    From 1 July 2012 to 30 June 2013, Natalie can claim fuel tax credits at the rate of 31.933 cents per litre for the diesel acquired and used in her generator. Fuel used in generating electricity is subject to the carbon charge.

    Natalie can claim 31.622 cents per litre for diesel she acquires from 1 July 2013 to 30 June 2014.

    Example: Burner use

    Pauline operates a foundry and uses diesel to run her furnace. The diesel has had excise duty paid on it.

    For diesel acquired from 1 July 2012 to 30 June 2013, the fuel tax credit rate was 31.933 cents per litre as fuel used in this activity is reduced by the carbon charge.

    Pauline can claim 31.622 cents per litre for diesel she acquires from 1 July 2013 to 30 June 2014.

    Example: Construction

    Aidan's company is contracted to do some earthworks for the local council on sites. He has been claiming fuel tax credits for the petrol he uses in his bobcat and his compactor. For petrol acquired from 1 July 2012 to 30 June 2013, Aidan can claim 32.623 cents per litre as the fuel for this activity is reduced by the carbon charge.

    Aidan can claim 32.347 cents per litre for the petrol he acquires from 1 July 2013 to 30 June 2014.

    Example: Manufacturing

    Wesley operates a diesel forklift to move materials and products around his steel fabrication workshop. He has been claiming fuel tax credits for the diesel he uses in his forklift.

    For diesel acquired from 1 July 2013 to 30 June 2014, Wesley can claim 31.622 cents per litre for this activity as fuel used for this activity is reduced by the carbon charge.

    Example: Landscaping and property management

    Kylie owns a landscaping business and does contract work for property management agents. She claims fuel tax credits for the petrol she uses in her brush-cutter, ride-on lawnmower and other equipment for both landscaping and her contract work.

    For petrol acquired from 1 July 2013 to 30 June 2014, Kylie can claim 32.347 cents per litre for these activities as fuel used for these activities is reduced by the carbon charge.

    End of example
      Last modified: 19 Sep 2014QC 41272