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Working out your fuel tax credits

Keep records from the start of your business activity so you are ready to calculate and claim your fuel tax credits.

Last updated 5 July 2021

Before claiming fuel tax credits on your Business activity statement (BAS), you need to work out your credits and determine what records you need to keep.

The amount you can claim depends on:

  • when you acquired the fuel
  • what fuel you use
  • the activity you use it for.

Separate calculations are required for the different fuel tax credit rates.

Next step:

Using the calculation worksheet

When using the fuel tax credits calculation worksheet, follow the three steps below to work out your fuel tax credits.

Step 1: Work out the eligible quantity

Work out how much fuel (liquid or gaseous, measured in litres or kilograms) you acquired for each business activity, and how much is eligible for fuel tax credits.

Exclude any fuel:

  • used in an ineligible activity – for example, in vehicles of 4.5 tonnes GVM or less travelling on public roads
  • if the fuel tax credits have already been claimed earlier in the supply chain – for example, claimed by the packager
  • used for private purposes
  • you acquired, but didn't use because it was lost, stolen or otherwise disposed of.

You can use any apportionment method considered fair and reasonable for your circumstances to work out the quantity of fuel when claiming fuel tax credits.

Common methods to work out the eligible quantity of fuel are:

  • constructive method
  • deductive method
  • percentage use method
  • estimated use method.

Standard conversion rates for gaseous fuels are:

  • 1 kg of LPG = 1.885 litres of LPG
  • 1 mega-joule of CNG = 0.01893 kg of CNG.

See also:

Step 2: Check which rate applies for the fuel

When calculating your fuel tax credits, including fuel used in heavy vehicles, you need to use the rate that applied when:

  • you acquired the fuel
  • you imported the fuel
  • you entered the fuel for home consumption (into the Australian domestic market) if you manufactured the fuel.

See also:

Step 3: Work out the amount

Work out the amount of your fuel tax credits in dollars.

Do this by multiplying the eligible quantity of fuel by the relevant fuel tax credit rate when you acquired the fuel (step 1 × step 2). You must divide the result by 100 to convert it into dollars.

When you have worked out the amount for the relevant BAS period, add the dollar amounts, then claim the whole dollar amount by recording it at label 7D on your BAS.

Next step:

To work out your fuel tax credits you need to keep complete and accurate records.

You may be able to use simplified methods to keep records and calculate your fuel tax credit claim.

Use the basic method for heavy vehicles to calculate your fuel tax credits if you claim less than $10,000 each year.