• 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
    Attention

    For the rates for specified agricultural activities, refer to Fuel tax credit rates and eligible fuels. 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.

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    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

    Find out more

    Information and a comprehensive list of agricultural activities:

    • FTR 2012/1WExternal Link 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
    • contact us.
    End of find out more
      Last modified: 19 Sep 2014QC 41272