← Guides / Australia

Australia Aviation Tax Guide

Australian aviation industry taxation. The guide covers: the airline corporate tax — the 'airline companies' (the 'Australian airlines' — the 'Qantas', the 'Virgin Australia', the 'Rex', and the 'regional airlines') are subject to the 'corporate tax' at the rate of 25% (the 'base rate entity' — the 'aggregate turnover below $50 million' and the '80% passive income test') or 30% (the 'standard corporate rate'); the 'airline income' includes the 'passenger fares', the 'freight revenue', the 'ancillary revenue' (the 'baggage fees', the 'seat selection fees', the 'in-flight sales'), and the 'frequent flyer program income'; the 'airline deductions' include the 'fuel costs', the 'aircraft lease costs', the 'maintenance costs', the 'crew costs', the 'airport charges', the 'landing fees', and the 'depreciation of the aircraft'; the aviation fuel excise — the 'aviation fuel' (the 'jet fuel — the 'kerosene', the 'aviation gasoline — the 'avgas') is subject to the 'excise duty' under the 'Excise Act 1901' and the 'Excise Tariff Act 1921'; the 'aviation fuel excise rate' for the 'jet fuel (the kerosene)' is approximately 3.56 cents per litre (the 'lower rate' compared to the 'automotive diesel at 47.7 cents per litre' — the 'aviation fuel is the 'rebated fuel' for the 'excise purposes'); the 'aviation gasoline (the avgas)' excise rate is approximately 3.56 cents per litre; the 'fuel tax credits' are NOT available for the 'aviation fuel used in the aircraft' (the 'aviation fuel is NOT eligible for the fuel tax credits'); the aircraft depreciation — the 'aircraft' (the 'commercial aircraft', the 'private aircraft', the 'helicopters') are the 'depreciating assets' under the 'Division 40 of the ITAA 1997'; the 'effective life of the aircraft' is determined by the 'ATO' — the 'commercial aircraft' (the 'airliners') have the 'effective life of 10 to 20 years', the 'general aviation aircraft' (the 'private planes') have the 'effective life of 10 to 15 years', and the 'helicopters' have the 'effective life of 8 to 12 years'; the 'aircraft depreciation' is calculated using the 'prime cost method' or the 'diminishing value method'; the GST on the aviation services — the 'aviation services' are subject to the 'GST at 10%' — the 'domestic flights' (the 'flights within Australia') are 'subject to the GST'; the 'international flights' (the 'flights from Australia to the overseas destination') are 'GST-free' (the 'international transport of the passengers and the goods' is 'GST-free' under the 'GST Act 1999'); the 'in-flight sales of the goods on the international flights' (the 'duty-free goods') are 'GST-free'.

Aviation Fuel Excise

  • Jet fuel excise: Approximately 3.56 cents per litre for the 'jet fuel (the kerosene)'. The 'lower rate' compared to the 'automotive diesel'.
  • Avgas excise: Approximately 3.56 cents per litre for the 'aviation gasoline'.
  • No fuel tax credits: The 'aviation fuel used in the aircraft' is NOT 'eligible for the fuel tax credits'.

For the fuel tax credits and the excise duties, see our Fuel Tax Credits Guide →.

Aircraft Depreciation

  • Effective life: The 'commercial aircraft' — 10 to 20 years. The 'helicopters' — 8 to 12 years.
  • Depreciation methods: The 'prime cost method' or the 'diminishing value method'.
  • Lease treatment: The 'aircraft lease payments' are 'deductible' as the 'operating expenses'.

For the depreciating assets and the capital allowances, see our Depreciating Assets Guide →.

GST on Aviation

  • Domestic flights: The 'flights within Australia' are 'subject to the GST at 10%'.
  • International flights: The 'international flights' are 'GST-free' (the 'international transport of the passengers and the goods').

For the GST rules and the BAS lodgement, see our GST Guide →.

Related Guides

Australia Tax Audit & Appeals Guide (ATO Audit, Objections, AAT, Court Appeals, Penalties)Australian tax audits and the dispute resolution — the ATO audit (the compliance check), the taxpayer objections (the objection process), the Administrative Appeals Tribunal (AAT), the Federal Court aCongo-Brazzaville Corporate Tax Guide 2026 — CIT 28% Standard (IBP), Oil 38–45%, Mining 30%Congolese corporate income tax. Standard IBP 28% for most companies, oil sector 38–45%, mining 30%, branches 28%, and capital allowance rates for 2026.Tanzania Property Tax Guide 2026 — Stamp Duty 1%, Registration 1%, Municipal Tax 0.1%Tanzanian property taxes. Stamp duty 1% on property transfers, registration fee 1%, municipal property tax ~0.1% of property value, CGT on property disposals, and TRA compliance requirements for propeHong Kong Capital Gains Guide: No CGT — What Is and Isn't TaxableHong Kong has no capital gains tax. All capital gains from investments, property, and assets are tax-free. Only trading gains (frequent transactions, business activity) may be taxable as profits. GuidAustria Corporate Tax Guide (Körperschaftsteuer 2026)Learn about Austrian Körperschaftsteuer (KöSt) at a flat 23% rate, group taxation (Gruppenbesteuerung), filing requirements via FinanzOnline, and the participation exemption for dividends and capital Algeria Personal Income Tax Guide 2026 — IRG 0–42% Progressive, Family QuotientAlgerian personal income tax (IRG). Progressive rates of 0%, 20%, 30%, 34%, 38%, and 42%. DZD 240K threshold, family quotient system, and tax brackets for 2026.
Browse all guides →