Tips for getting your Fuel Tax Credits claim right

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
  • 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 and is not based on actual fuel used for the quarter.  Fuel tax credits rates also change regularly so it’s important to check the rates each time you do your Business Activity Statement (BAS).


Tips for getting your claim right

We’re recently noticed increased ATO audit activity around Fuel Tax Credit claims. Most commonly, businesses weren’t aware they had to report on a cash or accruals basis in line with their GST reporting cycle.

It is very important to record the correct information on your BAS. Also:

  • if you report GST on a Cash basis, you must claim Fuel Tax Credit on a cash basis (that is, based on the date the fuel was paid)
  • if you report GST on an Accruals basis, you must claim Fuel Tax Credit on an accruals basis (that is, based on the date of the tax invoice for the fuel)

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 has developed an eligibility tool to help you work out which of your business activities are eligible and what rates apply, and a calculator to help you work out your claim.


Further help

If you have any questions about your Fuel Tax Claim, please contact us on 07 3023 4800 or at

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