Key Takeaways
- Fuel tax credit rates show how much credit eligible businesses can claim for fuel tax included in eligible fuel used for business activities.
- Eligible businesses can claim fuel tax credits when they meet the ATO requirements and use eligible fuel for qualifying business activities.
- Current rates are 21.3 cents per litre for liquid fuel used in heavy vehicles on public roads and 53.7 cents per litre for other business uses. See the tables below for rates by fuel type.
- Calculate your credit by multiplying the eligible amount of fuel by the rate that applied when you acquired it.
Many Australian businesses lose valuable tax credits when they apply outdated fuel tax credit rates incorrectly. Fuel prices, excise changes, and acquisition dates can alter the credit amount businesses can legitimately claim. The ATO states different rates apply according to fuel type, purchase timing, and qualifying business activities.
Therefore, checking the applicable rate before reporting helps businesses avoid inaccurate BAS claims and later adjustments. This guide explains current rates, historical changes, calculations, eligibility, BAS claims, and common mistakes to avoid.
What are Fuel Tax Credits?
Fuel tax credits give eligible businesses a credit for excise or customs duty included in qualifying fuel purchases. The Australian Taxation Office administers the scheme and lets businesses claim credits for fuel used in enterprises.
These rates exist because the scheme offsets some fuel excise or customs duty paid through fuel purchases. Accordingly, the applicable rate sets the amount businesses can recover for each eligible litre or kilogram. Businesses generally report these credits through their business activity statement, or BAS, for the relevant period.
Fuel Tax Credit Rates for 2026-27
For 2026–27, the ATO publishes fuel tax credit rates according to fuel type and use. This table applies to fuel acquired from 3 August 2026 and replaces previous rates. These figures distinguish heavy vehicles on public roads from other eligible business activities.
Rates for Fuel Acquired From 3 August 2026:
| Eligible fuel | Heavy vehicles travelling on public roads | All other business uses |
| Liquid fuels: for example, diesel or petrol (cents per litre) | 21.3 | 53.7 |
| Blended fuels – B5, B20, E10 (cents per litre) | 21.3 | 53.7 |
| Blended fuel – E85 (cents per litre) | 0 | 23.015 |
| Liquefied petroleum gas (LPG), duty paid (cents per litre) | 0 | 17.5 |
| Liquefied natural gas (LNG) or compressed natural gas (CNG), duty paid (cents per kilogram) | 0 | 36.8 |
| B100 (cents per litre) | 0 | 19.7 |
Rates for Fuel Acquired From 1 July 2026 to 2 August 2026:
The earlier table covers fuel acquired from 1 July 2026 through 2 August 2026. They show the tax credit rates for businesses needed for purchases made before the latest adjustment.
| Eligible fuel | Heavy vehicles travelling on public roads | All other business uses |
| Liquid fuels: for example, diesel or petrol (cents per litre) | 20.2 | 36.6 |
| Blended fuels – B5, B20, E10 (cents per litre) | 20.2 | 36.6 |
| Blended fuel – E85 (cents per litre) | 0 | 15.690 |
| Liquefied petroleum gas (LPG), duty paid (cents per litre) | 0 | 12.0 |
| Liquefied natural gas (LNG) or compressed natural gas (CNG), duty paid (cents per kilogram) | 3.2 | 25.1 |
| B100 (cents per litre) | 0 | 13.4 |
Together, the tables show the rate change following temporary fuel excise duty measures before August.
How Often Do Fuel Tax Credit Rates Change?
The ATO generally indexes these rates twice yearly in February and August, subject to specific changes. The 3 August 2026 table therefore represents the most recent rates for 2026–27.
Non-Business Rates for 2026-27
Non-business fuel tax credit rates apply mainly to emergency services and domestic electricity generation. The ATO separates these rates by fuel type, acquisition period, and qualifying non-business activity involved. Accordingly, use the table matching the date you acquired the fuel when preparing your claim.
Rates for Fuel Acquired From 3 August 2026:
| Eligible fuel type | Heavy emergency vehicles travelling on public roads | Other eligible non-business uses |
|---|---|---|
| Liquid fuels – for example, diesel or petrol | 21.3 cents per litre | 53.7 cents per litre |
| Blended fuels: B5, B20, E10 | 21.3 cents per litre | 53.7 cents per litre |
| Blended fuel: E85 | 0 cents per litre | 23.015 cents per litre |
| Liquefied petroleum gas (LPG), duty paid | 0 cents per litre | 17.5 cents per litre |
| Liquefied natural gas (LNG) or compressed natural gas (CNG), duty paid | 0 cents per kilogram | 36.8 cents per kilogram |
Other eligible uses include auxiliary equipment, emergency vessels, emergency vehicles, and domestic electricity generation. The non-business ATO table uses this activity grouping. The latest table applies to qualifying fuel acquired from 3 August 2026 onward. It covers heavy emergency vehicles on public roads and other eligible non-business uses. Rates vary by fuel type, while gaseous fuels use cents per kilogram rather than litres.
Rates for Fuel Acquired From 1 July 2026 to 2 August 2026:
| Eligible fuel type | Heavy emergency vehicles travelling on public roads | Other eligible non-business uses* |
|---|---|---|
| Liquid fuels – for example, diesel or petrol | 20.2 cents per litre | 36.6 cents per litre |
| Blended fuels: B5, B20, E10 | 20.2 cents per litre | 36.6 cents per litre |
| Blended fuel: E85 | 0 cents per litre | 15.690 cents per litre |
| Liquefied petroleum gas (LPG), duty paid | 0 cents per litre | 12.0 cents per litre |
| Liquefied natural gas (LNG) or compressed natural gas (CNG), duty paid | 0 cents per kilogram | 25.1 cents per kilogram |
These uses include qualifying emergency equipment, vessels, vehicles, and domestic electricity generation. The earlier table covers qualifying fuel acquired from 1 July through 2 August 2026. Non-business claimants must apply these rates specifically to fuel acquired during that period. Later claims should not replace these historical rates merely because newer figures now apply.
Who Can Claim Fuel Tax Credit Rates?
Eligibility depends on GST registration, fuel use, vehicle type and the business activity receiving the fuel. Businesses also need fuel tax credit registration before lodging claims through their BAS. Additionally, different rules apply to heavy vehicles, private roads, machinery, equipment and other qualifying business uses. The following sections explain eligible claimants and the fuel uses that cannot receive these credits.
Who is Eligible?
Eligible claimants must generally meet the following requirements before claiming fuel tax credits.
- GST-registered businesses can acquire and use eligible fuel while carrying on qualifying business activities.
- Businesses can use fuel in heavy vehicles, machinery, equipment, generators or other approved business applications.
- Claimants must register for fuel tax credits and keep records supporting their fuel purchases and usage.
Who is Ineligible?
Some fuel purchases and activities do not qualify, even when a business acquires the fuel.
- Businesses cannot claim credits for fuel used in light vehicles travelling on public roads.
- Private or non-business fuel use does not qualify because the fuel must support an eligible enterprise.
- Certain aviation fuels and alternative fuels remain excluded unless specific rules provide an eligible exception.
How are Fuel Tax Credit Rates Calculated?
Fuel tax credit rates depend on the fuel acquired, its use, and applicable eligibility rules. For qualifying off-road business uses, businesses generally apply the full rate to eligible fuel quantities. However, heavy vehicles travelling on public roads receive a reduced rate after the road user charge.
Therefore, businesses must identify the appropriate rate before calculating credits accurately for each reporting period before reporting. Businesses multiply eligible fuel quantities by the relevant rate, then convert cents into dollars when reporting claims. Additionally, you can also use the ATO’s fuel tax credit calculator to calculate the exact amount precisely for your situation.
Off-Road Business Use:
The exact formula is:
Fuel tax credit = Eligible fuel quantity × Applicable rate for qualifying off-road use activity
Example:
1,000 litres × $0.537 per litre produces a $537 fuel tax credit for eligible use.
Therefore, the business can report the $537 credit on its BAS for qualifying fuel use.
Heavy Vehicle on Public Road:
The exact formula is:
Fuel tax credit = Eligible litres × (fuel tax credit rate − road user charge)
Example
1,000 litres × $0.213 per litre produces a $213 fuel tax credit for eligible use.
Therefore, the business can report the $213 credit on its BAS for qualifying public-road fuel use.
How to Claim on Your BAS?
Eligible businesses can claim fuel tax credits through their Business Activity Statement (BAS). These credits are separate from an input tax credit, which relates to GST included in eligible business purchases.
- Firstly, confirm that you meet eligibility requirements and hold the required GST registration.
- Next, identify each fuel type, quantity, acquisition date, and qualifying business activity.
- Then, apply the correct rate to each eligible quantity using the ATO calculator.
- Afterwards, separate fuel acquired during different rate periods before totalling your credits.
- Finally, enter the total amount at BAS label 7D, then review and lodge your BAS.
Common Mistakes to Avoid
- Using today’s rate for earlier purchases can misstate claims because rates follow acquisition dates.
- Calculating credits from the fuel price instead of quantity can produce incorrect amounts.
- Including private fuel use can inflate claims because only eligible uses qualify.
- Ignoring the road user charge can overstate credits for heavy vehicles using public roads.
- Missing records can weaken claims because the ATO requires evidence supporting all quantities.
- Combining different fuel types can misstate amounts because each type may carry different rates.
Conclusion
Fuel tax credit rates can change according to fuel type, acquisition date, business use, and government adjustments. Therefore, businesses should check the ATO rate applying whenever they acquire taxable fuel for eligible activities. Historical periods may carry different rates, including temporary changes affecting petrol and diesel purchases during 2026.
Keeping accurate records also helps businesses calculate credits correctly and support the amount reported through their BAS. Businesses generally have four years to claim eligible credits, so timely record-keeping remains important for compliance. Have you checked yet whether your fuel purchases qualify for the current Australian fuel tax credit rates?
FAQs
1. Can non-business users claim fuel tax credits?
Yes, eligible non-business claimants can receive credits for domestic electricity generation or emergency services.
2. Can non-profit organisations claim fuel tax credits?
Non-profit bodies can claim credits when clearly identifiable emergency vehicles or vessels provide emergency services.
3. Do fuel tax credit rates change during the year?
Yes, the ATO regularly changes rates, so you should check the applicable acquisition-period rate.
4. How long do I have to claim fuel tax credits?
Eligible businesses generally have four years to claim credits, subject to the relevant attribution rules.
5. Are non-business fuel tax credits claimed through a BAS?
Non-business claimants generally use a fuel tax return rather than reporting these credits through a BAS.