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Fuel Tax Credit

The retail price of fuel sold in Australia includes a fuel tax. When you use fuel for specific business purposes, you can claim this tax back as a fuel tax credit. Eligible fuel types include petrol, diesel, kerosene and LPG. This post explains how the fuel tax credit system works. Other posts in this series are –

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fuel tax credit

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Diesel Fuel Rebate Rates 2021

You can claim tax credits when you use fuel for business activities. The diesel fuel rebate rates depend on the use of the fuel.  You need to use the correct rates in your fuel rebate calculator.

Not Eligible for Diesel Fuel Rebate

You cannot claim fuel use in light vehicles of 4.5 tonne gross vehicle mass or less, travelling on public roads.

Eligible for Diesel Fuel Rebate Rate of 16.9 cents/litre (*rate valid until 30 June 2021)

Public roads are roads that are available for use by the general public. They include toll roads, bus lanes and so on. You can claim tax credits for fuel you use in a heavy vehicle on public roads.

Eligible for Diesel Fuel Rebate Rate of 42.7 cents/litre (*rate valid until 30 June 2021)

You can claim a diesel fuel rebate for uses off public roads. For example –
  • Mines sites
  • Private roads
  • Site access roads
  • Construction sites
  • Farms
Some heavy vehicles are considered as being always used off public roads. For example –
  • Tractors
  • Graders
  • Combine harvesters
  • Fertiliser spreaders
  • Wheeled bulldozers
  • Forklifts
  • Wheeled excavators
  • Front end loaders
  • Backhoe loaders
  • Graders.
You can claim a diesel fuel rebate for fuels used in auxiliary equipment in your heavy vehicles. These are equipment and mechanisms unrelated to a vehicle’s travel on public roads. For example –
  • Truck refrigeration units
  • Mixing barrels of concrete trucks
  • Garbage bin lifters
The diesel fuel rebate rates change from time to time. Before claiming, you need to check not only the category but also the current rate.  This ensures your fuel rebate calculator returns the correct result.
 

Fuel Tax Credit Eligibility

You must register for both GST and fuel tax credits before you can make a claim. You can then register online through the Australia Business Register. If you already have an ABN, you can phone the ATO’s automated service on 13 72 26 or 13 28 66. When you call you will need your ABN and TFN.

You need records that include –
  • Purchased date, quantity and type of fuel
  • How you use that fuel in your business activities
  • How you calculate your claim (fuel quantity, diesel fuel rebate rates, etc)
Telematics systems can help you automate this process, by acting as a fuel rebate calculator.

Claim Fuel Tax Credit on your 2021 Business Activity Statement

Use this tool to determine if you are eligible for fuel tax credits. It also advises what rate you can claim.
 
Tax credits counts as business income, so you need to include them in your tax return.

To see current and historical rates, click here.

fuel tax credit
BY MATTHEW PEARSON - FUEL TAX CREDIT EXPERT

BY MATTHEW PEARSON - FUEL TAX CREDIT EXPERT

LAST UPDATED 17 MAY 2021

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