The ATO Announces New Fuel Tax Credit Rates!

fuel tax credits 2018


Great news, fuel tax credit rates have increased this financial year!

For taxpayers who own a business in machinery, plant, equipment and heavy vehicles, you’re most likely dealing with fuel expenses. You can claim the fuel tax credit for those expenses.

The ATO announces new business rates for the fuel acquired from 1 August 2018 to 31 January 2019.

Below you can see the new fuel tax credit rates.

Claiming business fuel tax credits.

Below are the requirements you need to meet to claim these fuel credits.

  • You claim fuel tax credits on your business activity statement (BAS)
  • At the time you acquired fuel, you were registered for the Goods and Services Tax (GST)
  • You obtained the fuel within four years from the day after you were required to lodge the BAS for the tax period in which the fuel was acquired.

You can check your business eligibility with the ATO tool to answer a few questions and calculate your fuel tax credit by clicking here.


Can non-businesses claim this credit?

Luckily, individuals and non-profit organisations can claim this credit. However, the fuel must be used to generate domestic electricity (for household use) or in emergency vehicles or vessels.

If you use fuel to generate electricity for business or commercial purposes and any use other than in emergency vehicles or vessels, you must register for the GST and claim your fuel tax credits on a BAS. Below are the new non-business rates from 1 August 2018 to 31 January 2019.

To register to claim the fuel tax credit you either have to phone the ATO at 13 28 66 or download the Fuel Tax Credit Registration – non-business claimants (NAT 15019) form.


Are you claiming less than $10,000 in fuel tax credits?

There are simpler ways to record and calculate your claim. You can use the rate that applies at the end of the BAS period or work out how much fuel you purchased.
For example, the ATO provides a useful formula for calculating the amount of fuel you use.

Litres = Total cost of fuel purchased ÷ Average price of fuel

This method can be used for all BAS periods ending 31 March 2016 and so on.


Avoid errors when claiming your fuel credits.

Follow these guidelines when figuring your fuel tax credit.

  • Check your fuel eligibility
  • Use the correct rate since they change regularly.
  • Make sure that the activity you use for your fuel is accurate as it affects your claim.
  • Double-check your calculations
    (An easy formula to use is: Quantity of eligible fuel × Correct fuel tax credit rate = Fuel tax credits)


We’re here to keep you updated on tax changes.

We’re also here to get you your refund as soon as possible. 31 October is the tax deadline so don’t forget to lodge your 2017-2018 tax return now!



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