Fuel excise is built into the price of every litre of diesel and petrol you buy. Fuel tax credits refund that excise to businesses for fuel used in ways the excise was never meant to tax — because excise is, in effect, a road-funding charge. Claims are made through your BAS, and the amount depends entirely on what the fuel was used for.
Fuel used off public roads — in machinery, generators, agriculture, mining, construction plant, or vehicles operating on private property — generally attracts the full excise rate. Fuel used in a heavy vehicle (over 4.5 tonnes) travelling on public roads attracts a much lower credit, because the road user charge is subtracted from it: that portion is treated as your contribution to road funding. The gap between the two rates is large, which is why accurate apportionment between on-road and off-road use is the single biggest driver of a correct claim.
This is the detail that catches most claimants. Fuel tax credit rates move with CPI indexation of fuel excise in February and August, and separately whenever the road user charge is adjusted — and they moved again on 3 August 2026. The 2026 temporary excise reduction added further changes mid-year. A rate that was correct one BAS period can be wrong the next, so always confirm the current cents-per-litre figure on the ATO's fuel tax credit rates page for the exact period of use before lodging. Where a rate changed mid-period, you apply each rate to the fuel actually acquired in its window.
You must be registered for GST and for fuel tax credits, and the fuel must have been acquired for use in your business. Keep records showing fuel purchases and the use they were put to — odometer or hour-meter readings, machine logs, or a documented apportionment method. A four-year time limit generally applies to claiming a fuel tax credit, running from the due date of the BAS in which it could first have been claimed — so genuinely missed credits are often still recoverable, though the separate period for revising an assessment runs from lodgment. Small claimants (under $10,000 a year) can use the ATO's simplified methods.
Can I claim for light vehicles on public roads? No — fuel used in vehicles of 4.5 tonnes or less travelling on public roads is specifically excluded. The same vehicle used off public road can be eligible.
Does auxiliary equipment count? Yes. Fuel powering equipment such as a concrete mixer barrel, refrigeration unit or crane, even on a road-going truck, is generally treated as off-road use at the higher rate.
Is the credit taxable? Fuel tax credits are assessable income, so they're included in your business's income for tax purposes.
This calculator uses current published rates from Australian government and regulator sources. The result is an estimate for general guidance — it does not constitute personal financial advice. For decisions about your circumstances, consult a registered financial adviser, tax agent, or other professional. See editorial standards for how DecisionLab sources and updates its calculator data.
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