• 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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    Road transport

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

    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.

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    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, refer to Heavy vehicles.

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

    Find out more

    End of find out more
    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.

    Attention

    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.

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    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.

    Find out more

    •  Heavy vehicles  
    • FTR 2008/1External Link Fuel tax: vehicle's travel on a public road that is incidental to the vehicle's main use and the road user charge
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      Last modified: 19 Sep 2014QC 41272