Australian Business Fuel Tax Refund: What You Need to Know for 2024-2025. Get current fuel tax credit rates for Australian businesses. Find rates for heavy vehicles, diesel, petrol, and alternative fuels from July 2024 to June 2025.
Understanding fuel tax credits can significantly reduce your business operating costs. If you’re an Australian business owner using fuel for commercial purposes, you may be entitled to claim back some of the fuel tax you’ve paid. Here’s everything you need to know about the current rates and how they apply to your business.
What Are Fuel Tax Credits?
Fuel tax credits allow eligible businesses to claim back the fuel tax (excise or customs duty) included in the price of fuel used for business activities. The amount you can claim depends on when you acquired the fuel and how you used it.
Current Fuel Tax Credit Rates
The fuel tax credit rates change periodically throughout the financial year. For 2024-2025, there are three different rate periods you need to be aware of:
Rate Periods for 2024-2025
- 3 February 2025 to 30 June 2025 (Latest rates)
- 5 August 2024 to 2 February 2025
- 1 July 2024 to 4 August 2024
Heavy Vehicles vs Other Business Uses
The rates differ significantly between heavy vehicles and other business applications:
| Fuel Type | Heavy Vehicles (cents/litre) | Other Business Uses (cents/litre) |
|---|---|---|
| Diesel/Petrol | 20.3 | 50.8 |
| LPG | 0 | 16.6 |
| LNG/CNG | 0 | 34.8 |
| B100 | 0 | 15.2 |
Note: Rates shown are for the current period (3 February 2025 onwards)
Important Changes Affecting Your Claims
Road User Charge Increases
The road user charge is increasing by 6% annually over three years, which directly impacts your fuel tax credits:
- 2023-24: 28.8 cents per litre
- 2024-25: 30.5 cents per litre
- 2025-26: 32.4 cents per litre
This increase reduces the amount you can claim, especially for heavy vehicles using liquid fuels on public roads.
Alternative Fuels
E85 blended fuel and B100 offer different credit rates. Currently, gaseous fuels like LPG, LNG, and CNG provide zero credits for heavy vehicle use due to the road user charge offsetting the fuel tax.
How to Calculate Your Credits
Use the ATO’s fuel tax credit calculator to determine your exact entitlements. Remember to use the rate that applied on the date you acquired the fuel, not when you used it.
When completing your Business Activity Statement (BAS), ensure you’re applying the correct rates for your specific fuel type and usage category.
Maximizing Your Business Benefits
To get the most from fuel tax credits:
- Keep detailed records of fuel purchases and usage
- Separate heavy vehicle use from other business activities
- Consider timing of fuel purchases around rate change dates
- Review your fuel mix to optimize credit opportunities
Fuel tax credits can provide substantial savings for businesses with significant fuel usage. Stay informed about rate changes and ensure you’re claiming all eligible credits through your BAS submissions.
Frequently Asked Questions
Q: How often do fuel tax credit rates change?
A: Rates typically change 2-3 times per financial year, with specific effective dates announced by the ATO.
Q: Can I claim credits for fuel used in company cars?
A: No, fuel tax credits are only available for business use, not for vehicles used for private purposes or employee benefits.
Q: What’s the difference between heavy vehicle and other business use rates?
A: Heavy vehicles receive lower rates due to the road user charge, while other business uses receive the full fuel tax credit amount.
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