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Fuel Tax Credit Rates for Business

Fuel tax credit rates vary depending on when you acquire the fuel, what fuel you use and the activity you use it for.

Fuel tax credit rates are indexed twice a year, in February and August, in line with the consumer price index (CPI). In line with the 6-monthly CPI inflation adjustments, fuel tax credit rates for heavy vehicles on public roads have increased to 14.2 cents per litre, along with changes to a number of other rates from 1 February 2017.

Rates may also change for fuel used in a heavy vehicle for travelling on public roads. This is due to changes to the road user charge which is reviewed annually.

Fuel pump

For links to all the current rates, see the ATO website. There are time limits for claiming fuel tax credits, making adjustments and correcting errors – generally, you must claim or amend your claim within four years.

Simplified fuel tax credits

If you claim less than $10,000 in fuel tax credits in a year, there are simpler ways to record and calculate your claim.

You are now able to:

  • use one rate in a BAS period – the rate that applies at the end of the BAS period
  • work out your litres based on the cost of the fuel you purchased.

You can choose to use either or both of these methods that best suits your needs and can change them at any time. You do not need to register or tell the ATO you are using these methods. You can also use a range of documents to support your fuel tax credit claims for your past and future BAS.

Use one rate in a BAS period

When there is a change of rate during the BAS period, you can calculate your fuel tax credit claim by using the rate that applies at the end of the BAS period. There is no need to split your fuel purchases during the period and use two different rates. Simply total your litres for the period and use the rate that is current on the last day of the BAS period to work out your claim.

You can use the Fuel tax credit calculator or the ATO app to work out your fuel tax credits and get your claim right.

You can use a range of documents to support your claim and entitlement for a fuel tax credit. You need to keep these for five years. These documents must show that the quantity of fuel claimed was used in your business.

Accepted documents include:

  • contractor statements
  • financial institution business credit/debit account statement
  • financial institution personal credit/debit account statement
  • point-of-sale docket
  • fuel supplier statement or invoice.

Heavy vehicles used mainly off public roads

If you use certain heavy vehicles mainly off public roads, you no longer need to apportion on and off-road travel when calculating your fuel tax credit claim. Your vehicle may be on the list the ATO has created of heavy vehicles which are considered used off public roads – for example, a harvester or backhoe. You can now claim all fuel used at the ‘all other business uses’ rate, even if you sometimes drive the vehicle on a public road.

How to check the rates and calculate your claim

The ATO has a fuel tax credit calculator, containing the latest rates and is simple, and it is quick and easy to use. You can use it to work out the fuel tax credit amount to report on your business activity statement (BAS). Alternatively, to find the latest rates, use the ATO fuel tax credit rates table which is now easier to read, located at fuel tax credit calculator. For further information visit the ATO website or give us a call, we’re here to help.