Fuel Tax Credits
Fuel tax credits provide a credit for the tax that is included in the price of fuel.
Most businesses are able to claim fuel tax credits when using fuel for business activities in machinery, plant, equipment or heavy vehicles.
Since 1 July 2013 fuel tax credit rates have changed. There have been changes to some rates due to increased carbon charge amounts.
Businesses could be affected by the following rate changes:
- for fuels used in heavy vehicles when traveling on public roads
- for transport of gaseous fuels, other than when used for traveling on public roads
- for non-transport gaseous fuels used in certain activities
The fuel tax credit rate can vary depending on what fuel is being used by the business and the activity that it is used for.
When calculating the fuel tax credit, claim the rate that applied when the fuel was acquired.
However, for fuel used in heavy vehicles traveling on a public road, the rate in effect at the beginning of the tax period will be used. Businesses continue to claim fuel tax credits on their business activity statement.