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Australia Fuel Tax Credits Guide

Australian fuel tax credits. The guide covers: the fuel tax credits — the 'fuel tax credits' are the 'credits' for the 'businesses' that use the 'fuel' (the 'diesel', the 'petrol', the 'LPG', the 'CNG', the 'ethanol', the 'biodiesel') in the 'eligible activities'; the 'fuel tax credits' are the 'refund' of the 'excise duty' (the 'fuel excise') paid on the 'fuel' used in the 'business activities'; the 'fuel tax credits' are claimed through the 'Business Activity Statement (BAS)' under the 'Fuel Tax Credits Scheme' (the 'FTC scheme' under the 'Fuel Tax Act 2006'); the eligible fuels — the 'eligible fuels' for the 'fuel tax credits' include: (i) the 'diesel' (the 'automotive diesel'), (ii) the 'petrol' (the 'unleaded petrol' — except the 'petrol used in the light vehicles on the public roads'), (iii) the 'LPG' (the 'liquefied petroleum gas'), (iv) the 'CNG' (the 'compressed natural gas'), (v) the 'ethanol' (the 'ethanol blends' — the 'E10'), (vi) the 'biodiesel', (vii) the 'mineral turpentine' and the 'white spirit' used in the 'non-road activities'; the fuel tax credit rates — the 'fuel tax credit rates' are 'indexed' twice per year (the '1 February' and the '1 August'); the 'fuel tax credit rate' for the 'diesel' and the 'petrol' (the 'heavy vehicles on the public roads') is the 'rate that matches the fuel excise rate' (the 'excise rate' minus the 'road user charge'); the 'road user charge' for the 'heavy vehicles' is the 'charge for the road use' — the 'net fuel tax credit rate' for the 'heavy vehicles on the public roads' is the 'excise rate' minus the 'road user charge' (the 'RUC' — from the 1 July 2025, the 'RUC' is approximately 27.9 cents per litre for the 'diesel'); the 'fuel tax credit rate' for the 'off-road activities' (the 'fuel used in the 'plant and equipment', the 'generators', the 'farming equipment', the 'mining equipment') is the 'full excise rate' (the 'no road user charge deduction'); the 'fuel tax credit rate' for the 'LPG' and the 'CNG' is the 'lower rate' (the 'LPG excise rate' is lower than the 'diesel excise rate'); the eligible activities — the 'fuel tax credits' are available for the 'fuel used in the 'eligible activities'' including: (i) the 'heavy vehicles on the public roads' (the 'vehicles with the gross vehicle mass (GVM) of 4.5 tonnes or more' — the 'trucks' and the 'buses'), (ii) the 'off-road business activities' (the 'fuel used in the 'plant and equipment' — the 'excavators', the 'bulldozers', the 'forklifts', the 'cranes', the 'generators', the 'pumps', the 'compressors'), (iii) the 'agriculture' (the 'fuel used in the 'farming equipment' — the 'tractors', the 'harvesters', the 'irrigation pumps'), (iv) the 'mining' (the 'fuel used in the 'mining equipment'), (v) the 'marine' (the 'fuel used in the 'commercial vessels'), (vi) the 'aviation' (the 'fuel used in the 'aircraft' for the 'business purposes').

Fuel Tax Credit Rates

• Heavy vehicles (road): The 'net fuel tax credit rate' for the 'diesel used in the heavy vehicles (GVM of 4.5 tonnes or more)' is the 'excise rate' minus the 'road user charge'. The 'RUC' is approximately 27.9 cents per litre for the 'diesel' (from 1 July 2025).
• Off-road (full rate): The 'fuel used in the off-road activities' (the 'plant, equipment, generators, farming, mining') is eligible for the 'full excise rate' — the 'no road user charge deduction'.
• Light vehicles (petrol): The 'petrol used in the light vehicles (GVM below 4.5 tonnes) on the public roads' is NOT eligible for the 'fuel tax credits'. The 'diesel used in the light vehicles' is NOT eligible for the 'fuel tax credits'.

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

Eligible Fuels & Activities

• Eligible fuels: The 'diesel', the 'petrol (off-road only)', the 'LPG', the 'CNG', the 'ethanol', the 'biodiesel', and the 'mineral turpentine' are 'eligible fuels' for the 'fuel tax credits'.
• Agriculture: The 'fuel used in the farming equipment' (the 'tractors', the 'harvesters', the 'irrigation pumps', the 'sprayers') is eligible for the 'full fuel tax credit rate' (the 'off-road rate').
• Marine & aviation: The 'fuel used in the commercial vessels' and the 'fuel used in the business aircraft' is 'eligible' for the 'fuel tax credits'.

For the vehicle expenses and the car deductions, see our Motor Vehicle Tax Guide →.

Claiming Fuel Tax Credits

• BAS lodgement: The 'fuel tax credits' are claimed through the 'Business Activity Statement (BAS)' — the 'label 7C (the fuel tax credits)'. The 'FTC' is the 'refundable credit' — the 'credit' reduces the 'BAS payable'.
• Record keeping: The 'business' must keep the 'fuel receipts', the 'odometer records', the 'logbook records', and the 'fuel usage records' for at least '5 years'.
• Indexation: The 'fuel tax credit rates' are 'indexed' twice per year (the '1 February' and the '1 August') in line with the 'CPI' and the 'fuel excise indexation'.

For the business expenses and the deductions, see our Business Expenses Guide →.