ato logo
Search Suggestion:

Fuel sold for domestic home heating

How to claim fuel tax credits if you sell fuel for domestic home heating.

Last updated 24 March 2015

To claim fuel tax credits for fuel sold for domestic home heating, you must:

  • acquire, manufacture, or import kerosene or heating oil to be sold to householders for domestic home heating
  • be registered for GST
  • be registered for fuel tax credits.

You are only entitled to claim fuel tax credits for kerosene or heating oil if you reasonably believe it will be used for domestic heating purposes. You should consider the following before claiming:

  • the volume of fuel that is being delivered
  • the location of the delivery
  • the name to whom the delivery is made (an individual or business name)
  • frequency of deliveries and seasonal factors
  • any other relevant factors indicating either a domestic or commercial purchaser.

A distributor should not claim fuel tax credits for sales of fuel to a business for heating because that business is generally entitled to fuel tax credits on the fuel.

A distributor cannot claim fuel tax credits for sales of diesel for heating of either a domestic or business premises. A business can claim fuel tax credits for diesel used for heating.

Where kerosene is packaged in containers of 20 litres or less, for a use other than in an internal combustion engine (such as for domestic heating), it is the packager of the fuel who is entitled to the fuel tax credits. Domestic or business users cannot claim fuel tax credits.