What are fuel tax credits?

Businesses can claim fuel tax credits to offset fuel tax (excise or customs duty) that's included in fuel prices for:

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

The amount depends on the fuel you use, when you acquire it, and what you do with it. The rates for fuel tax credits also change frequently, so it's important to check them every time you prepare your business activity statement (BAS).

A few fuels and activities are not eligible, including fuel used in cars with a gross vehicle mass (GVM) of 4.5 tonnes or less.

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.