Fuel Tax Credit changes 2022

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If your business uses fuel, you may be able to claim credits on your Business Activity Statement (BAS) for the fuel tax included in the price of the fuel you use.

You can claim for taxable fuel that you purchase, manufacture or import, for business activities in:

  • machinery
  • plant
  • equipment
  • heavy vehicles over 4.5 tonnes 
  • light vehicles travelling on private roads

As part of the 2022-23 Budget, the Government has temporarily halved the excise and excise equivalent customs duty rates for petrol, diesel and all other petroleum-based products (except aviation fuels) for 6 months from 30 March 2022 until 28 September 2022. This has caused a reduction in fuel tax credit rates.

During this 6 month period, businesses using fuel in heavy vehicles for travelling on public roads won’t be able to claim fuel tax credits for fuel used for this purpose. This is because the road user charge exceeds the excise duty payable, and this reduces the fuel tax credit rate to nil.

If this doesn’t apply to you and you can still claim fuel tax credits, you can use the Fuel tax credit calculator or the Australian Taxation Office (ATO) app (for small business owners) to calculate your fuel tax credits.

The table below shows the new rates (in cents per litre) on fuel acquired from 30 March 2022 to 30 June 2022.

Source: ATO

To ensure you can claim your credits, you have to be registered for Goods and Services Tax (GST) and fuel tax credits. If you aren’t registered, click here!

Make sure you get professional advice when claiming fuel tax credits from your Aintree Group advisor. You can also save some time by having us lodge your BAS on your behalf.

If you need to talk to someone about your Fuel Tax Credits, please contact your Aintree Group advisor directly, or call 03 9851 7999.