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  • Attention

    Warning:

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

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    Agriculture

    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

    The fuel tax credit rates from 1 December 2011 for the following activities are:

    • 2.5 cents per litre for duty paid LPG
    • 5.22 cents per kilogram for duty paid LNG and CNG
    • 38.143 cents per litre for all other taxable fuels.

    If your activity is not listed here, it may be eligible under another activity, such as All other activities.

    You can claim fuel tax credits for taxable fuel (for example, diesel, petrol or duty paid gaseous fuels) 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 (see note 1)
    • viticulture, horticulture, pasturage or apiculture
    • transporting livestock (see note 1) other than on a public road (see note 2) – for example, moving for agistment
    • 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 (see note 3)
    • service, maintenance and repairing business vehicles or equipment
    • storing or packing produce
    • preventing produce deterioration
    • disposing of waste from an agricultural activity.

    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
    • firefighting.

    Example: Agriculture

    Siena uses a diesel-powered tractor to cart materials around her vineyard. The fuel she uses for this activity is eligible for fuel tax credits at the rate of 38.143 cents per litre.

    Siena also uses a petrol-fuelled ride-on mower and whipper-snipper to maintain her vineyard. From 1 July 2008, Siena can claim fuel tax credits at 38.143 cents per litre for the fuel she uses in this equipment.

    End of example

    Notes:

    1. For the purposes of fuel tax credits, livestock includes any animal raised to produce food, fibres, skins, fur or feathers or for use in farming the land.
    2. Transporting livestock on a public road may be eligible under the road transport activity.
    3. If the hay is baled on the agricultural property where it was grown, it does not matter who actually performs the baling.

    See also:

    • FTR 2006/1W 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 22 of the Energy Grants (Credit) Scheme Act 2003
      Last modified: 18 Jul 2013QC 26645