Important changes to fuel tax credits

Do you use fuel in your business?

If so, you should know that there are new changes to the fuel tax credit rates from the Australian Taxation Office.

When calculating your fuel tax credit, you’ll need to use the fuel tax credit rate that applied on the date you purchased the fuel.

For a full explanation of the changes, check out our news article:

What are the changes?

Any fuel you obtained from 10 November 2014 will have an increased fuel tax credit rate. Rates will now be indexed on 1 February and 1 August each year in line with the consumer price index (CPI).

What do the changes mean for my business?

When calculating your fuel tax credit, you need to use the fuel tax credit rate that applied when you acquired the fuel.

What are fuel tax credits?

Fuel tax credits provide you with credit for the tax element of any fuel you use for your business activities.

Fuel tax credits can be claimed for any taxable fuel you purchase, manufacture or import.

Taxable fuels can include liquid fuels , fuel blends and gaseous fuels .

You can claim fuel tax credits for business activities in machinery, plant, equipment and heavy vehicles. Theamount of fuel tax credits you can claim depends on:

  • the type of fuel you use

  • when you acquired it

  • what business activity you use it in.

How do I claim fuel tax credits?

To claim fuel tax credits, make sure:

  • Your business is eligible This includes being registered for Goods & Services Tax (GST). Use the Australian Taxation Office's (ATO) Fuel tax credit eligibility tool to find out if you're eligible.

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

  • You claim on your BAS You claim fuel tax credits on your BAS in the same way as you claim GST credits.

  • You claim within the time limits Generally, you must claim your credits within four years. The four years commences from the day after you were required to lodge the BAS for the tax period in which the fuel was acquired.

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