The ATO has increased fuel tax credit rates from 4 February 2019. As fuel tax credit changes are made regularly, it is important to check the rates each time you lodge a business activity statement (BAS) with the ATO.

Understanding the ATO’s Fuel Tax Credit Changes

Fuel tax credits provide businesses with a credit for the price of fuel used in machinery, plants, equipment, heavy vehicles, or light vehicles travelling on private roads. The amount of credit will depend on when the fuel is acquired, what fuel is used and the activity it is used for. The fuel tax credit changes in fuel tax are indexed twice a year, in February and August in line with the consumer price index (CPI). The current rates apply from 1 July 2018 to 30 June 2019.

How to Claim Fuel Tax Credits

Fuel tax credit can be claimed on your BAS in the same way as GST credits. To correctly work out the credit you are eligible to claim, you must keep complete and accurate records. Your records must:

  • Show the amount of fuel acquired and used in your business and calculations.
  • Be in writing, either electronically or on paper.
  • Be in English or able to be easily translated.
  • Have been kept for a minimum period of five years.

Businesses that claim less than $10,000 in fuel tax credit each year can use a simplified method to make claims to the ATO. For further information on claiming fuel tax credit and specific rates, you should consult your registered tax agent.

Unsure if the new fuel tax credit changes will affect the amount you can claim this year? Speak to a business tax accountant from Taggart & Partners today to ensure your business is claiming the right amount of fuel tax credit.

Updated 29th February 2020

*** This publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication. Publication date April 2019

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