We have recently been advised that a number of businesses may be missing out on their Fuel Credit entitlements because they are not aware of them. In this article we take a look at what a fuel tax credit is, who is eligible to claim and what can be claimed.

What is a fuel tax credit?

Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) that’s included in the price of fuel used in:

  • machinery
  • plant
  • equipment
  • heavy vehicles
  • light vehicles travelling off public roads or on private roads.


The fuel tax credit rates are reviewed six monthly each year with the revised rates updated on the 4th of February this year.

So what are the key items to consider on whether you are eligible to claim?

 A number of businesses may not be aware they are eligible to claim for:

  • Light vehicles – less than 4.5 tonnes gross vehicle mass (GVM) if they travel off road or on privately owned roads. One transport firm using GPS information recently determined the time that their light vehicles have been off road or on private roads. They have now calculated a large amount in fuel tax credit rebates over the period and have applied for a revised claim.
  • Light trucks greater than 4.5 tonnes (GVM) weight. This includes vehicles such as the Iveco Daily Van that is available with the optional 5.5 tonnes GVM or some other Light Trucks. So some businesses do not claim simply because they believe that their vehicle doesn’t qualify.


Also if your business is involved in agriculture, fishing, mining, construction or landscaping it’s likely you will be able to claim under the scheme.

In mining and exploration fuel costs can be up to 30 per cent of total operational costs, which means claiming a fuel tax credit rebate can be a significant advantage for these businesses.

It is worthwhile checking and seeing if you are eligible.

If you are uncertain on whether you qualify we recommend that you contact your accountant or tax adviser. You may be pleasantly surprised!