• Attention

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    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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    About fuel tax credits

    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

    Introduction

    Fuel tax credits provide you with a credit for the fuel tax (excise or customs duty) included in the price of fuel you use in:

    • business activities
    • machinery
    • plant
    • equipment
    • heavy vehicles.

    The only fuels that are not eligible are:

    • aviation fuels
    • fuels you use in light vehicles of 4.5 tonne gross vehicle mass (GVM) or less, travelling on a public road
    • fuel you acquired but did not use because it was lost, stolen or otherwise disposed of
    • some alternative fuels.

    For more information about eligible activities, see Activities you can claim for.

    You must be registered for both GST and fuel tax credits before you can make a claim. You claim fuel tax credits on your business activity statement (BAS).

    For more information about registering for fuel tax credits, see Registering.

    Most businesses can claim

    Fuel tax credits were introduced on 1 July 2006 for fuel used in heavy vehicles and in a range of other business activities. Eligibility was expanded on 1 July 2008 as part of a gradual implementation, up to 1 July 2012, to include taxable fuels used in other business activities, machinery, plant and equipment.

    Attention

    From 1 December 2011, excise or customs duty will apply to gaseous fuels – that is, liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG) – used for transport purposes in most instances. There will also be circumstances where excise duty is paid on gaseous fuels that are used for non-transport use.

    As a result of these changes, if you acquire, manufacture or import duty paid gaseous fuels for use in eligible business activities, you may be entitled to claim fuel tax credits from 1 December 2011.

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    Most businesses can claim fuel tax credits – it is just the rate that varies, depending on what fuel you use and your business activities.

    For more information about:

      Last modified: 18 Jul 2013QC 26645