How to Claim Fuel Tax Credits: ATO 2026 Guide
Fuel tax credits are available for businesses that use eligible fuel in heavy vehicles (over 4.5 tonnes) or certain machinery. The ATO sets varying credit rates depending on fuel type and whether the vehicle operates on-road or off-road. For 2025-26, diesel used on-road attracts a higher credit than off-road use. This calculator estimates your potential claim.
FAQ
Q1: What vehicles/machinery are eligible for fuel tax credits?
Eligible: heavy vehicles (>4.5 tonnes) travelling on public roads, auxiliary equipment (e.g., refrigerated units), and certain off-road machinery used in primary production, mining, or construction. Light vehicles (<4.5 tonnes) generally are not eligible for fuel tax credits, even if used for business.
Q2: How do I calculate my fuel tax credit?
Fuel Tax Credit = (Litres of eligible fuel) × (Business use percentage) × (Applicable rate per litre). Rates are published by ATO and may differ for on-road vs off-road use, and vary by fuel type (diesel, petrol, LPG). Use this calculator to estimate; for actual claims, refer to ATO guidelines.
Q3: What records do I need to keep?
You must keep: fuel receipts/invoices, odometer readings for heavy vehicles (or logbooks for mixed use), evidence of business use percentage, and documentation showing if vehicle/machinery is eligible. Records for at least 5 years. The ATO may audit your claims.
Important: Fuel tax credit rates are indexated annually. Check the latest ATO rates for the current financial year before lodging your Business Activity Statement (BAS).