Fuel Tax Credit Rates Change

The Government temporarily halved the excise and excise equivalent customs duty rates for petrol, diesel and all other petroleum-based products (except aviation fuels) for 6 months from 30 March 2022 until 28 September 2022. This has caused a reduction in fuel tax credit rates.

During this 6 month period, businesses using fuel in heavy vehicles for travelling on public roads won’t be able to claim fuel tax credits for fuel used for this purpose. This is because the road user charge exceeds the excise duty payable, and this reduces the fuel tax credit rate to nil.

Here’s what you need to know when claiming fuel tax credits on your business activity statement (BAS):

• Rates changed on 1 February and 30 March. If you lodge quarterly, 3 different rates may apply to your BAS, which is due on 28 April. Rates are based on when the fuel was acquired.
• The fuel tax credit calculator link below makes it easier for you to apply the right rates.
• In this 6-month period, businesses using fuel in heavy vehicles for travelling on public roads won’t be able to claim fuel tax credits. This is because the road user charge exceeds the excise duty you’ll pay, and this reduces the fuel tax credit rate to nil.
• It’s important to keep accurate records to support your claims. These records need to show the type, date and quantity of fuel acquired for business activities.

You can find the ATO’s updated fuel tax changes and rates that apply for the period from 30 March 2022 to 30 June 2022 here. The ATO’s fuel tax credit calculator has been updated to apply the current rates.

Please contact us for further information about fuel tax credit changes.