Fuel Tax Credit
A credit for businesses that use fuel in heavy vehicles, machinery, equipment, or other eligible business activities.
Fuel tax credits allow eligible businesses to claim a credit for the fuel tax (excise or customs duty) included in the price of fuel used in business activities. The credit rates vary depending on the type of fuel, the business activity, and whether the vehicle travels on public roads. Credits are claimed through your Business Activity Statement (BAS).
The main eligible activities include: operating heavy vehicles (over 4.5 tonnes GVM) on public roads, using fuel in machinery, plant, or equipment for business (e.g., generators, forklifts, farm equipment), and using fuel in light vehicles for off-road business purposes. Light vehicles (under 4.5 tonnes) used on public roads are generally not eligible, as the fuel excise is intended to fund road infrastructure.
Fuel tax credit rates change regularly (usually twice a year, in February and August) in line with fuel excise indexation. For 2025–26, the rate for heavy vehicles on public roads is approximately 19 cents per litre for diesel, while the off-road rate is higher (around 50 cents per litre) because no road-user charge applies. You must keep records of fuel purchased (receipts or fuel supplier statements) and how it was used to substantiate your claims.