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How to claim Fuel Tax Credits?

how to claim fuel tax credits

Certain businesses can claim a credit for the fuel tax applied to purchases of fuel which is used in machinery, plant, heavy vehicles, equipment and light vehicles on private roads.

Fuel tax credits can be claimed in the Business Activity Statement; however, you must be registered to claim fuel tax credits before you can do so.

There are very specific requirements which you will need to meet to claim fuel tax credits:


In order to be eligible to claim fuel tax credits you must:

  • Be registered for GST (at the time the fuel is purchased); and

  • Be registered for fuel tax credits (at the time you lodge a claim).

Eligible Fuels & Activities:

You can claim fuel tax credits for fuel used travelling on public roads if the vehicle is used as part of your business (not for private use) and has a Gross Vehicle Mass greater than 4.5 tonnes.

If your vehicle is less than 4.5 tonnes and used for business, you can only claim the fuel used on private roads.

There is a wide variety of industries which can take advantage of fuel tax credits including:

  • Agriculture

  • Construction

  • Manufacturing

  • Landscaping

  • Panel Beating

You can claim fuel tax credits on petrol, diesel, LPG, and other fuels which have fuel tax applied to them.

Working Out the Amount of Credits to Claim:

The amount of fuel tax credits you can claim is based upon what the fuel is used for, when it was acquired and what type of fuel is used. The rates are updated frequently so it is always best to check the ATO website for the most up to date information.

For example:

1000L of Diesel is purchased during the May 2018 BAS cycle. The rate for agriculture, fishing, mining, construction or landscaping is 40.9¢ per litre.

1000L multiplied by 40.9¢ = $409 fuel tax credits.

If your business uses multiple types of fuel, and for different purposes, you will need to calculate each by their relevant rate.

For the most up to date information, check the ATO Website.

How to Lodge a Claim for Fuel Tax Credits:

To lodge a claim for fuel tax credits, simply record the calculated amount in your Business Activity

Statement under the relevant section (7D).

For more Information on claims and deductions. Contact us at Buildersbooks and we can help you.


This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice.

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