• 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

    Non-fuel uses

    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

    You can claim fuel tax credits for taxable fuel (for example, diesel, heating oil, kerosene, fuel oil, toluene, mineral turpentine, white spirit or duty paid gaseous fuels) you use for a non-fuel use in your business.

    Non-fuel use means using fuel in any way other than in an internal combustion engine. Fuel you use in an internal combustion engine may be eligible under All other activities.

    Non-fuel use applies to:

    Fuel you use for burning

    You can use fuel in this category in burner applications to generate heat. It can be used in a wide variety of industries for a number of industrial purposes, including:

    • panel beating
    • greenhouse heating
    • in cement kilns
    • in industrial furnaces.

    Fuel you use directly in a non-fuel manner

    This category includes fuel that you apply directly onto a surface and not to provide power, for example:

    • fuel you use to clean machinery parts or drums
    • diesel you spray directly onto a road as a sealant
    • fuel you use as a mould release.

    Fuel you use as an input or ingredient

    You can use fuel in this category as an input or ingredient in the manufacture of another product, as long as that product cannot be used as a fuel in an internal combustion engine. Examples include:

    • printing inks
    • paint
    • plastics
    • cleaning agents
    • adhesives
    • rubber products
    • pharmaceutical products.
    Attention

    We may issue a determination that a blend of a fuel with a non-fuel product does not constitute a fuel. If your blend is subject to such a determination, you are entitled to fuel tax credits for the fuel component you use in making that blend.

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    Example: Non-fuel uses

    Ted’s Paint Supplies purchases toluene (a fuel) to use in manufacturing paint. The price of the fuel includes the excise duty of 38.143 cents per litre.

    Ted blends the toluene with other non-fuel products to make the paint that he then sells to his customers.

    Ted is entitled to fuel tax credits on the toluene because the final product (the paint) cannot be used as a fuel in an internal combustion engine.

    End of example
    Further information

    If you are not sure if the fuel you use to manufacture your products is eligible for fuel tax credits, you can request a private ruling from us. For more information about private rulings:

    End of further information

    Packaging or distributing fuel

    You can claim fuel tax credits where you:

    • package duty paid LPG in containers of 210 kilograms or less for uses other than in an internal combustion engine and for use in a forklift used mainly off-road
    • package mineral turpentine, white spirit, kerosene and certain other fuels (prescribed by the regulations) in containers of 20 litres or less for uses other than in an internal combustion engine
    • sell certain types of fuel for domestic home heating
    • sell duty paid LPG for transfer to tanks for residential use.

    Packaged fuels

    Consumers may use the fuels for a variety of reasons, including cleaning, lamp lighting and other general household uses.

    The products’ packaging (including any images or text forming part of the packaging) must not suggest or imply that the fuel can be used in an internal combustion engine.

    Fuels sold for domestic home heating

    If you distribute heating oil, kerosene or duty paid gaseous fuels for residential heating, you can claim fuel tax credits so that individual users do not have to claim them. You must have a reasonable belief that the fuel will only be used for domestic home heating.

    Further information

    For more information about eligible activities associated with non-fuel use:

    End of further information
      Last modified: 18 Jul 2013QC 26645