• 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

    Mining

    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
    Attention

    The fuel tax credit rates from 1 December 2011 for the following activities are:

    • 2.5 cents per litre for duty paid LPG
    • 5.22 cents per kilogram for duty paid LNG and CNG
    • 38.143 cents per litre for all other taxable fuels.

    If your activity is not listed here, it may be eligible under another activity, such as All other activities.

    End of attention

    If you are undertaking mining operations, you can claim for taxable fuel (for example, diesel, petrol or duty paid gaseous fuels) you use for any of the following activities:

    • exploring and prospecting for minerals5
    • removing overburden or preparing a site for mining
    • recovering minerals5
    • beneficiation of minerals5 or ores – for example, production of bauxite into alumina
    • rehabilitation of a place affected by a mining operation
    • removing mining waste from a mine site.

    The following activities may be eligible if they occur at a place where a mining operation is carried out:

    • searching for ground water solely for use in a mining operation
    • pumping or supply of water solely for use in a mining operation – this activity may also be eligible if the water is sourced from a place adjacent to the place where the mining operation occurs
    • certain construction activities – for example, constructing private access roads, buildings, tailing dams and other dams for use in a mining activity
    • disposal of waste from a mining activity
    • servicing, maintenance or repair of vehicles, plant and equipment you use in a mining transport operation
    • servicing, maintenance or repair of a transport network you use solely in a mining transport operation
    • using a vehicle with a GVM of 3.5 tonne or less providing the vehicle has been extensively modified for use underground and is used underground6  
    • sundry mining activities, as specified in the public ruling.

    Example: Mining

    The Acme Salt Company has been claiming fuel tax credits at 38.143 cents per litre for diesel used in salt production up to the point where the salt is stockpiled – that is, before it is loaded onto ships by a conveyor belt.

    The company can also claim fuel tax credits at 19.0715 cents per litre for diesel acquired for use in the equipment loading the salt from the stockpile to the conveyor belt. From 1 July 2008, this activity is eligible under All other activities.

    End of example
    Further information

    For more information about fuel tax credits for mining activities:

    • refer to Fuel Tax Ruling FTR 2006/2WExternal Link Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into Australia for use in carrying on an enterprise involving 'mining operations' as defined in section 11 of the Energy Grants (Credit) Scheme Act 2003
    • phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday.
    End of further information

    Notes:

    5. The following substances are not 'minerals' for the purposes of fuel tax credits: sand, sandstone, soil, slate, clay (other than bentonite or kaolin), basalt, granite, gravel, water or limestone (other than agricultural use limestone).
    From 1 July 2008, you can claim fuel tax credits at 19.0715 cents per litre for mining a substance that is not defined as a 'mineral'.

    6. You can claim fuel tax credits at 38.143 cents per litre for taxable fuel (for example, diesel or petrol) you use in forklifts, front-end loaders, tractors or similar vehicles, providing you use these vehicles for mining activities.

      Last modified: 18 Jul 2013QC 26645