The Australian government allows eligible businesses that are registered for GST and acquire fuel to use in their business, for example in machinery, heavy vehicles, plants and equipment, to claim credits for the fuel tax included in the price of their fuel. Eligible fuel can be acquired, imported, manufactured or used in the business and can be petrol, diesel, biodiesel (including B5 and B20, and other blend ratios), ethanol (including E10 and E85, and other blend ratios), and other products like kerosene and heating oil. Credits are not available for fuel used in light vehicles used on public roads or certain aviation fuels, and the amount of the credit is dependent upon the type of fuel, what it’s used for and when it was purchased. For more information, visit the ATO’s Fuel Tax Credits – business page here.
The credit rates change regularly – twice yearly in line with the consumer price index, and annually in accordance with changes to the charge for fuel used in heavy vehicles travelling on public roads. The current rates for liquid, gaseous and blended fuels can be found here.
The ATO has developed some useful tools to help you work out if your business is eligible for the fuel tax credits scheme and what rates apply, and a calculator to help you work out your claim. Click on the links below to find out more.
Biodiesel users of prescribed blends like B20, can gain an advantage over diesel. For calculation purposes B20 is considered diesel even though it locally produced biodiesel attracts a lower excise rate. For more information including examples click here.