• 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

    All other activities

    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
    • 19.0715 cents per litre for all other taxable fuels.
    End of attention

    The business activities eligible for fuel tax credits were expanded on 1 July 2008, as part of a gradual implementation, up to 1 July 2012, to cover all other activities – that is, fuel you use in other business activities, machinery, plant and equipment. From 1 December 2011, you can also claim fuel tax credits for duty paid gaseous fuels used in eligible business activities.

    The fuel tax credit rate for all other activities is 50% of the full rate for all taxable fuels other than gaseous fuels. From 1 July 2012, the fuel tax credit rates for taxable fuels (other than gaseous fuels) used in all other activities will increase from 19.0715 cents per litre to 38.143 cents per litre.

    Fuel tax credits do not apply to fuel you use in light vehicles of 4.5 tonne GVM or less travelling on a public road – diesel vehicles you acquired before 1 July 2006 are eligible if they equal or exceed 4.5 tonne GVM.

    A number of construction, manufacturing, wholesale/retail, property management and landscaping activities are eligible for these rates, as are a wide range of other activities. Some of these are listed below.

    Attention

    The following table shows examples only – it is not a complete list.

    End of attention
    Table 3: Examples of all other activities
    Examples of activities Examples of fuel use

    Agriculture

    • Carrying on a business of breeding or rearing horses for show or racing.
    • Distributing, manufacturing or marketing produce.

    Example: Maddi’s business is breeding and training horses and she uses a tractor to cart feed and hay around her property. From 1 July 2008, Maddi can claim fuel tax credits of 19.0715 cents per litre for the fuel she uses in her tractor, whether it is diesel or petrol.

    Construction

    • Operating equipment such as bulldozers, graders and cranes.
    • Undertaking earthworks or roadworks.
    • Undertaking contract work for councils, telecommunications providers, public utilities or any similar organisation.

    Example: Giorgio’s company is contracted to do some earthworks for the local council. From 1 July 2008, Giorgio can claim fuel tax credits of 19.0715 cents per litre for the petrol he uses in his bobcat and his compactor.

    Manufacturing and fabrication

    Using diesel or petrol forklifts to load and unload material within the factory.

    Example: Wesley operates a diesel forklift to move materials and products around his steel fabrication workshop. From 1 July 2008, Wesley can claim fuel tax credits of 19.0715 cents per litre for the diesel he uses in his forklift.

    Fishing

    Processing fish on-shore.

    Example: Ben uses a petrol forklift to load packaged fish onto trucks for transportation to the fish markets. From 1 July 2008, this activity is eligible for fuel tax credits at 19.0715 cents per litre.

    If Ben used LPG in his forklift instead, it is unlikely this fuel would be duty paid, as use in a forklift mainly used off-road is considered non-transport use. If the LPG is duty paid, the packager will claim the fuel tax credits if it was supplied in a container of 210kg capacity or less.

    Forestry

    • Constructing or maintaining a sawmill, chip mill or other processing facilities.
    • Carrying on any activity beyond the milling process – for example, dressing, planing or shaping wood or producing particle board.

    Example: Gerry has a small business where he slices logs (flitches) into timber veneer for furniture. From 1 July 2008, Gerry can claim fuel tax credits at 19.0715 cents per litre for the diesel or petrol he uses in his veneer slicing equipment.

    Landscaping

    • Using compactors for compacting pavers.
    • Using blower-vac equipment for clearing leaves.

    Example: Anne-Maree owns a landscaping franchise. From 1 July 2008, she can claim fuel tax credits at 19.0715 cents per litre for the petrol she uses in her whipper-snipper and in her ride-on lawn mower.

    Marine transport

    • Producing goods, including boat building.
    • Planning, developing, constructing, operating or maintaining waterways, ports, docks, freight terminals, storage depots, marinas or aquatic recreational facilities or their associated infrastructure.

    Example: Sam runs an operation that uses a number of petrol and diesel forklifts on the wharf for loading and unloading vessels. From 1 July 2008, Sam can claim fuel tax credits of 19.0715 cents per litre for this activity.

    Dredging

    Dredging a shipping channel.

    Example: Dirk is a dredging contractor. From 1 July 2008, Dirk can claim fuel tax credits at 19.0715 cents per litre for the diesel he acquires for use in his dredges.

    Mining

    Mining a material that is not considered a mineral (for example, soil) for construction activities.

    Example: Michael’s Sand Supplies Pty Ltd quarries sand to use in landscaping. From 1 July 2008, Michael can claim fuel tax credits at 19.0715 cents per litre for the diesel he uses in his excavators.

    Property management

    Operating lawn mowers and other equipment.

    Example: Kylie has a property management business and maintains a number of rental properties. From 1 July 2008, Kylie can claim fuel tax credits at 19.0715 cents per litre for the petrol she uses in her lawn mower, blower-vac and other equipment.

    Quarrying

    Quarrying for materials to use in building, road making, landscaping, construction or similar activities.

    Example: Russet Sandstone quarries sandstone for use in building. From 1 July 2008, Russet Sandstone can claim fuel tax credits at 19.0715 cents per litre for the diesel they use in their rock saw.

    Rail transport

    • Planning, developing, constructing or operating railways, tramways, light rail networks, freight terminals or storage depots.
    • Activities related to producing or manufacturing goods, including rail vehicles.
    • Maintenance of a rail line (or rail corridor) by vehicles or equipment not operating on rails.

    Example: Colin’s Contracting Pty Ltd operates unmodified excavators, dumpers and loaders beside the tracks to maintain the railway line. From 1 July 2008, Colin can claim fuel tax credits at 19.0715 cents per litre for the diesel he uses in his equipment.

    Recreation, sport or tourism

    Operating a business involving recreational equipment – for example, quad bikes on a beach.

    Example: The High Flyers Training School operates a business training recreational pilots. It has a grass runway and training rooms on its grounds. The business uses a ride-on mower and quad bikes to maintain the landing field and surrounds. From 1 July 2008, the school can claim fuel tax credits at 19.0715 cents per litre for the petrol they use in the mower and the bikes.

    Wholesale/retail

    Operating lawn mowers and other equipment to maintain the premises.

    Example: Mark keeps his plant nursery business looking clean and tidy by using petrol-operated lawn mowers and blower-vacs. From 1 July 2008, Mark can claim fuel tax credits at 19.0715 cents per litre for the petrol he uses in his equipment.

    Examples of eligible equipment

    Attention

    The following are examples of eligible equipment – it is not a complete list.

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    • All-terrain bikes (off-road use)
    • Asphalt pavers
    • Augers
    • Backhoes
    • Blower vacuums
    • Bulldozers
    • Cement mixers
    • Chainsaws
    • Compactors
    • Compressors
    • Cranes
    • Crushers
    • Dredges
    • Drills
    • Excavators
    • Front-end loaders
    • Graders
    • Hoists
    • Lawn mowers
    • Outboard motors
    • Pumps
    • Rollers
    • Whipper-snippers
    • Winches
      Last modified: 18 Jul 2013QC 26645