Fuel is a big cost for trades, freight, farming and delivery businesses. If your business is eligible, fuel tax credits can give some of it back through your BAS. The ATO also warns that errors in fuel tax credit claims are common, so it pays to get them right.

Are you eligible?

The ATO says you must be registered for GST when you buy the fuel, and registered for fuel tax credits when you lodge the claim. The fuel must also carry duty. Fuel used in light vehicles of 4.5 tonnes gross vehicle mass or less on public roads is generally not eligible. The ATO has an eligibility tool that can check your fuel and activities.

Records to keep

  • The date, type and quantity of each fuel purchase, with the tax invoice.
  • What the fuel was used for, so you can show which activities qualify.
  • How you worked out the claim.
  • Any changes if you correct an earlier claim. The ATO says to keep those records for 5 years.

If you claim less than $10,000 a year, the ATO offers simplified record keeping. You can use things like contractor statements, financial institution statements or point of sale dockets, as long as you can show the fuel was used in your business.

How and when to claim

You claim on your BAS using the fuel tax credit labels. The rate depends on the date you bought the fuel, so check the current rate table each time you lodge. Claims generally need to be made within 4 years of the due date of the earliest BAS in which you could have claimed.

What to do

  • Check your registrations in Online services for business.
  • Split fuel for eligible and ineligible vehicles from day one, for example with separate fuel cards.
  • Reconcile fuel purchases each month, not at year end.

This is general information only. Rates and rules change, so confirm them on the ATO website or with a registered tax agent before you claim.