• 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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    Activities where the fuel is not 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

    Non-combustible uses include:

    • fuel you use directly in a non-fuel manner – for example, as a solvent
    • fuel you use as an input or ingredient in the manufacture of products – for example, paint manufacture.
    Attention

    Fuel tax credit rates for these non-combustible activities were not reduced by the carbon charge.

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

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    If your activity is not listed here, or you use fuel in an activity where the fuel is combusted – that is, in an internal combustion engine or burnt – you may be eligible under another activity with a different rate.

    You can claim fuel tax credits for taxable fuel you use for a non-combustible use in your business – for example, diesel, heating oil, kerosene, fuel oil, toluene, mineral turpentine, white spirit, duty paid LPG, LNG or CNG.

    Non-combustible use means using fuel in a way that does not ignite or burn the fuel – for example:

    Fuel tax credits for non-transport gaseous fuel used in a non-combustible activity – such as LPG used as a propellant in the manufacture of aerosols – depend on when the fuel was acquired. If you acquired the fuel:

    • in the period 1 July 2012 to 30 June 2013 – you can claim fuel tax credits at a rate equal to the carbon charge amount for LPG or LNG
    • from 1 July 2013 – you cannot claim fuel tax credits for the fuel as no excise or customs duty has been paid on the fuel from this date. However, if the non-combustible activity is a specified agriculture, fishing and forestry activity, you are entitled to fuel tax credits until 30 June 2014 at a rate equal to the carbon charge amount.

    Find out more

    If you are not sure if the fuel you use to manufacture your products is eligible for fuel tax credits, you can request a private ruling from us. For more information about private rulings:

    End of find out more

    Fuel you use directly in a non-fuel manner

    This category includes fuel that you apply directly onto a surface and not to provide power – for example:

    • fuel you use to clean machinery parts or drums
    • diesel you spray directly onto a road as a sealant
    • fuel you use as a mould release.
      Last modified: 19 Sep 2014QC 41272