Fuel Tax Credits — claiming the excise back

Businesses that use fuel for taxable activities and are GST-registered. Common eligible uses: machinery (excavators, generators, forklifts), heavy vehicles over 4.5 tonnes on public roads, vehicles travelling off public roads on a worksite, and farming equipment. Driving an ordinary work ute on public roads is not eligible at the moment (this rule has shifted historically).

FTC rates change every February and August in line with fuel-excise indexation. There are different rates for different uses — heavy on-road, off-road, light vehicles where eligible, and various fuel types. The ATO's online rate calculator gives the current figure for each combination. Rates are cents per litre; current diesel off-road rate sits in the high-40-cents-per-litre range as at May 2026.

· Fuel purchases (litres, type, date, supplier) · Vehicle and equipment details — registration, type, weight class · Business-use evidence — logbooks, jobsite records, fuel-card statements · Calculation showing how litres × rate × eligible-use percentage produces the claim amount

Claims go on label 7D of the BAS. The amount reduces the GST liability for the quarter. There's a simplified method if your annual claim is under $10,000 — apportion the rate using a 'basic method' rather than detailed records. Above that threshold, full records are mandatory.

· Claiming for a light vehicle on public roads — generally not eligible · Using the wrong rate (changes every February and August) · Claiming 100% on equipment that has any private or non-business use · Not retaining fuel-card statements — the ATO will ask in audit

If your fuel spend is significant and you're not currently claiming, this is found money. We do a one-off retrospective claim covering up to four years of unclaimed credits, then build the calculation into your ongoing BAS process.