Video transcript - Fuel tax credits
You can claim credits for the fuel tax, which is excise or customs duty, included in the price of fuel you acquire and use in your business activities in machinery, plant, equipment and heavy vehicles.
Some eligible activities include road transport, construction, manufacturing, agriculture, fishing, forestry, electricity generation, landscaping, panel beating, cement kilns, quarrying, and industrial furnaces.
In fact, most businesses can claim fuel tax credits. It’s just the rate that varies depending on the fuel you can use and your business activity.
Because I’m in landscaping, I’ve been claiming fuel tax credits at around 30 cents per litre for the petrol I use in my whipper-snipper and my ride-on lawn mower.
Fuel tax credit rates might change so as well as checking the correct rate for your business activity, be sure to check the rate each time you claim.
Examples of fuels eligible for fuel tax credits include petrol, diesel, kerosene and LPG. Some fuels aren’t eligible such as fuel you use in light vehicles of 4.5 tonne gross vehicle mass or less, travelling on public roads.
You must be registered for both GST (goods and services tax) and fuel tax credits before you can make a claim. You can register electronically through the Australian Business Register at abr.gov.auExternal Link or if you already have an ABN (Australian business number), you can phone the ATO’s automated service on 13 72 26 or on 13 28 66. When you call make sure you have your ABN and TFN (tax file number) ready.
You claim fuel tax credits on your business activity statement.
To work out if you are eligible for fuel tax credits and what rate you can claim, use the Fuel tax credit eligibility tool. The ATO also has a Fuel tax credit calculator which can help you work out your fuel tax credit entitlements.
This video explains who is eligible to claim fuel tax credits and what to do if you are eligible.