Fuel Tax Credits provide eligible Australian businesses with a refund or offset for the fuel tax (excise or customs duty) included in the price of fuel used in business operations.

The credit amount depends on the type of fuel, how it’s used, and current ATO rates. Claims are made through your Business Activity Statement (BAS).

Who Can Claim Fuel Tax Credits?

You may be eligible if you:

• Operate a business (e.g. transport, farming, construction, manufacturing)
• Use fuel in business vehicles, machinery, or equipment
• Are registered for GST
• Use eligible fuel types, including:
  • Diesel
  • Petrol
  • Biodiesel
  • Kerosene
  • LPG (in some uses)

Private use of fuel is not eligible for credits.

Eligible Uses of Fuel

Use Case	Eligible?
On-road use of heavy vehicles (>4.5t)	✅ Yes (partial credit)
Off-road use in machinery or generators	✅ Yes (full credit)
Light vehicle on public road	❌ No
Agriculture or mining equipment	✅ Yes

The ATO distinguishes between on-road and off-road uses, which affect how much credit you can claim.

Fuel Tax Credit Rates (2024–25)

Rates vary quarterly and by:

• Fuel type
• End use (e.g. heavy vehicle vs off-road machinery)
• Location (remote area concessions may apply)

You can find the latest rates at the ATO website or use the Fuel Tax Credit calculator.

How to Claim Fuel Tax Credits

1. Keep records of fuel purchases and usage
2. Work out eligible litres and rate
3. Include your claim in the BAS at label 7D
4. Use the amount to reduce your GST liability or receive a refund

You must retain records for at least 5 years, including fuel invoices, usage logs, and calculations.

Common Claim Mistakes

• Claiming for ineligible vehicles or private use
• Using outdated rates
• Not apportioning fuel used across different activities
• Failing to lodge within 4 years of fuel use

How Ozobooks Helps

• Determines eligibility for fuel tax credits
• Applies correct ATO rates and usage categories
• Prepares and reconciles fuel logs
• Includes fuel claims in your BAS lodgements
• Supports documentation for ATO reviews or audits

FAQ

Q1: Do I need to keep fuel receipts?
Yes — valid tax invoices are required to support your claim, especially for high-volume users.

Q2: Can I claim fuel used in my car?
Usually not — unless it’s a heavy vehicle >4.5 tonnes used in business. Regular cars are excluded.

Q3: What if I didn’t claim fuel credits in past BAS periods?
You can make adjustments or corrections up to 4 years back.

Q4: Is there a minimum claim amount?
No, but claims must be accurate and supported by records.