Fuel tax credits: Getting your claim right

By Kelly+Partners Team  |  9 Nov 2021

What are fuel tax credits? 

Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) that’s included in the price of fuel used in:

  • machinery
  • plant and equipment
  • heavy vehicles
  • light vehicles travelling off public roads or on private roads.

The amount depends on when you acquire the fuel, what fuel you use and the activity you use it in. Fuel tax credits rates also change regularly so it’s important to check the rates each time you prepare your business activity statement (BAS).

Some fuels and activities are not eligible, including fuel you use in light vehicles of 4.5 tonnes gross vehicle mass (GVM) or less, travelling on public roads.

The ATO states that the easiest and safest way to get fuel tax credit claims right is to use:

  • the simplified methods – such as the basic method for heavy vehicles, which provides certainty and protection for claims less than $10,000 each year;
  • a global positioning system (GPS) or telematics technology product that has a current product ruling. This provides certainty, regardless of the size of the claim, provided the product is used as set out in the product ruling.
Your Kelly+Partners Client Directors can advise whether you are eligible to claim fuel tax credits and can help you claim credits.

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