Overview of fuel tax credits
In claiming fuel tax credits, you may have made a mistake on a previous activity statement or used the fuel in a different way than you originally intended, or found a processing error that we've made.
You can generally correct errors and make adjustments on your current activity statement when you find the error or become aware of the need for an adjustment.
There are no restrictions on making adjustments, but some conditions apply when correcting errors. If you don't meet these you'll need to revise the activity statement on which the error was made (see Revising an earlier activity statement).
If you don't claim fuel tax credits on an activity statement, see Fuel scheme claims.
Errors
You will have made a mistake and need to correct it when the fuel tax credit amount you claimed on your activity statement was not correct at the time you lodged it. For example, you may have made a clerical or transcription error or claimed for fuel not eligible for fuel tax credits.
Adjustments
An adjustment is needed when you've already claimed fuel tax credits based on your intention to use that fuel in a certain way but actually use it differently, resulting in a different fuel tax credit amount. Making an adjustment may increase or decrease your fuel tax credit amount.
For more information see Amending fuel tax credit claims for non-business.
Correcting our errors
We can make errors processing your activity statement – for example, it may scan incorrectly or we may make a keying mistake. If you think we've made an error, phone us.
Unclaimed credits
If you forget to claim fuel tax credits that you are entitled to, for example you overlook an invoice, or delay claiming fuel tax credits, this is not considered a mistake or adjustment. You can claim these credits on your current activity statement provided you're within the 4-year credit time limit.
Your entitlement to a fuel tax credit ceases if it is not included in an assessment before the 4-year credit time limits ends. If you think you are entitled to unclaimed fuel tax credits, we recommend you consider your options early and do not leave requests to the last minute.
When claiming a fuel tax credit for an earlier period you must work out the amount using the rate that applied at the time you acquired the fuel.
4-year credit time limit
To work out if you're still entitled to an unclaimed fuel tax credit, you need to work out if you're within the four-year credit time limit.
The 4-year credit time limit:
- starts the day after the lodgment due date of the first BAS of the tax period you could have claimed the fuel tax credit in, and
- ends 4 years after that date.
When a credit has been included in an assessment
If your fuel tax credit has been included in an assessment within the 4-year credit time limit, your entitlement to that credit will not cease once the time limit ends.
Your fuel tax credit will have been included in an assessment if:
- you included the fuel tax credit in an original BAS, even if you reduce it by subtracting the road user charge.
- we made an amendment to your assessment to include additional fuel tax credits within the 4-year credit time limit.
When a credit has not been included in an assessment
A fuel tax credit will not be included in an assessment if you only do the following:
- apply for a private ruling
- make a request to amend your assessment
- make a voluntary disclosure.
This is because the credit must be included in an assessment before the end of the 4-year time credit limit. If we amend an assessment following your request or application, the amendment may be made on a different day to the date of your request or application:
- If the amendment is made before the end of the 4-year credit time limit, the fuel tax credits will have been included in an assessment on the day we made the amended assessment.
- If the amendment is made after the end of the 4-year credit time limit, your entitlement to the fuel tax credits has ceased and we cannot include them in the amended assessment. If doesn't matter if your application or request was made within the 4-year credit time limit for the fuel tax credits or during the period of review for the assessment.
Objection requests
Lodging an objection request by itself does not result in the fuel tax credit being included in your assessment.
We may still be able to allow your fuel tax credit claim if all of the following are met:
- you lodge a valid objection that includes your position that you are entitled to the unclaimed fuel tax credits in the tax period
- the objection is lodged within the 4-year credit time limit for those fuel tax credits
- we agree or, after subsequent court or tribunal proceedings, you are entitled to the fuel tax credits in that tax period.
If you lodge your objection after the 4-year credit time limit, your entitlement to the fuel tax credits will have ceased. This will be the case even if the objection was lodged within the objection time limits or is treated by us as being lodged within the objection time limits.
If you miss the 4-year credit time limit
If you don't claim your fuel tax credit in an assessment before the end of the 4-year credit time limit, your entitlement to that fuel tax credit will cease.
If you forget to claim fuel tax credits that you are entitled to or delay claiming fuel tax credits, we can't treat this as a mistake or an adjustment. There is nothing you can do after the end of the 4-year credit time limit and we have no discretion to extend the 4-year credit time limit.
For more information, see MT 2024/D1Time limits for claiming an input tax credit and fuel tax credits