Getting Fuel Tax Credits Right

Getting Fuel Tax Credits Right:

Fuel tax credits are often subject to change, so knowing what you or your business may be able to claim is critical. If you make the wrong claim on your BAS, you could be out of pocket for an avoidable mistake

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:

(Can you use icons of below examples as dot points)

• Machinery
• Equipment
• Plant
• Heavy Vehicles
• Light Vehicles travelling off public roads or on private roads

The fuel has to have been used for your business.

Taxable fuels include:

• Liquid Fuels
• Fuel Blends
• Gaseous Fuels

You can claim fuel tax credits for eligible fuels you use in business activities (including in light vehicles), such as on private roads, off public roads and for non-fuel uses.

Make sure that you used the reduced rates that applied for fuel acquired between 30 March and September 2022 (during the temporary reduction in fuel excise duty). If it’s not correctly calculated, you may have overclaimed. This can be done using the ATO’s fuel tax calculator.

Fuel tax credits were also increased on 1 February due to indexation affecting the fuel excise duty

(Fuel Tax Chart on next page)  

Remember, when you’re calculating fuel tax credits on your BAS:

• use the ATO’s fuel tax credit calculator every time you make a claim
• you can easily fix errors and make adjustments on your current BAS
• always keep accurate records to support your claims.

Registered tax and BAS agents like us can also assist you with your BAS & fuel tax credit claims - just ask us how. (03) 9728 1448.