Fuel Tax Credits (formerly Diesel Fuel Rebate)

If your business uses fuel to power machinery, plant, equipment and/or heavy vehicles, then you may be eligible for a Fuel Tax Credit (refund) from the ATO. The amount of credit available depends on the type of fuel you use, when you acquire the fuel, and the type of activity you use it in.

Small businesses operating in Road Transport are commonly able to claim a credit. In order to be eligible for your Road Transport activities your vehicle must be:

  • Used to carry on a business
  • Have a GVM of 4.5 tonnes or greater (or equal to 4.5 tonne if acquired after 1 July 2006)

As well as road transport, many off-road uses of fuels such as diesel are also deemed eligible activities by the ATO. These activities include fishing, forestry, agriculture, mining, construction, manufacturing, marine & rail transport to name a few. This is not a complete list, please speak to us to see if your business is eligible.

The rates you can claim differ depending on your business activity. For example, currently Diesel used in on road transport activities is eligible for a rebate of 12.76 cents per litre, whereas diesel used in off road activities qualifies for a rebate of 38.9 cents per litre.

In order to make a claim, you must be registered for GST at the time you purchase the fuel, as well as being registered for Fuel Tax Credits at the time of lodging your claim. For most clients, South East Accounting assist with calculating your rebate on a quarterly basis when we prepare your Business Activity Statement.

The information provided here is general in nature and should not be relied on in isolation.

Please give us a call if you wish to discuss if your business may be eligible for Fuel Tax Credits.


Article Written by Callinda Beale.

Callinda is a member of the Institute of Chartered Accountants

and a Director of South East Accounting.