• Fuel tax credits for individuals, businesses and others

    Following a disaster, you may need to use taxable fuel (such as diesel or petrol) for generating electricity for domestic purposes or for eligible business activities to run machinery, plant, equipment and heavy vehicles. If you are a non-profit organisation you may need to operate emergency vehicles or vessels.

    Fuel tax (excise or customs duty) is included in the price of certain fuels, including diesel, petrol, heating oil, kerosene and fuel oil. You may be entitled to claim a fuel tax credit if you use these fuels in undertaking eligible activities.

    You cannot claim fuel tax credits for:

    • certain fuels such as aviation fuels, non-transport gaseous fuels or
    • certain uses such as fuel used for private purposes or
    • if you are a business fuel you use in light vehicles of 4.5 tonnes gross vehicle mass or less, travelling on public roads and, fuel that has been lost, stolen or otherwise disposed.

    Domestic electricity generation

    You can claim fuel tax credits for any taxable fuel, such as diesel or petrol, you acquire for use in generating electricity for domestic purposes. The fuel can be used to generate electricity using a motor or generator, for yourself or others.

    'Domestic purposes' means for a home, house or household. This includes a:

    • static home, such as a single house, duplex, town house, unit or cabin
    • relocatable home, such as a demountable home
    • marine home, such as a houseboat
    • mobile home, such as a caravan or motorhome.

    Example

    Donna's home was destroyed by fire and she no longer has access to an electricity supply. She and her family are living in a caravan on the land while their home is being rebuilt. Donna uses a generator to supply the caravan with electricity. As the caravan is now considered her home, she can claim fuel tax credits for the fuel used in generating electricity for domestic purposes

    End of example

    See also:

    Fuel used in a business

    Businesses that are registered for GST can claim credits for the fuel tax included in the price of fuel used in eligible business activities to operate machinery, plant, equipment and heavy vehicles.

    Example

    Peter is a sole trader and is registered for GST. During the floods, the basement of his business premises - where he kept a lot of stock - filled with water and, for safety, his electricity supply was disconnected. Peter hired a generator to operate a pump to clear the water from his basement. He can claim fuel tax credits for the fuel acquired and used in the generator because it was for business purposes.

    End of example

    See also:

    Operating emergency vehicles or vessels

    If you operate a non-profit organisation that has chosen not to register for GST because its GST turnover is less than $150,000, you can still claim fuel tax credits on a fuel tax credits claim form providing you meet all the following requirements:

    • only claim for fuel you use to operate emergency vehicles or vessels
    • are a non-profit organisation at the time you acquire, manufacture or import the fuel
    • acquire, manufacture or import the fuel for use in a vehicle or vessel that  
      • provides emergency services
      • is clearly identifiable as such.
       

    See also:

  • Last modified: 18 May 2016QC 21528