Entitlement to fuel tax credits for excisable fuel blends

Businesses that manufacture excisable fuel blends in Australia need to understand whether they are entitled to fuel tax credits for the fuels they use in their fuel blends.

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 your business activities, including in:

• machinery
• plant
• equipment
• heavy vehicles.

Fuel tax credits for manufacture of excisable fuel

Generally, fuel manufacture doesn't create an entitlement to fuel tax credits. However, an entitlement may arise for fuels used in fuel blends if either:

• the blend can't be used in an internal combustion engine (for example, paint)
• we determine the blend is no longer a fuel under the Fuel Tax Act.

Find out about:

• Blends no longer considered fuel

See also:

• Fuel not used in an internal combustion engine

No fuel tax credits for certain recycled used oil

We don't consider it to be excise manufacture if you only filter and de-water used oil so it can be reused. This means the reused oil isn't a taxable fuel for the purposes of the Fuel Tax Act and there's no entitlement to fuel tax credits. Contact your supplier to confirm whether the reused oil you use in your business is included in this category.

Find out about:

• Excise on recycled petroleum products

See also:

• Fuel tax credits – business