Correct Fuel Tax Credit Rate
Are you making the most of fuel tax credits for your business? Fuel tax credits are vital to managing operational costs for many businesses. These credits allow businesses to claim a rebate on the fuel tax they pay for eligible fuel used in their operations, significantly reducing their overall expenses.
Understanding how fuel tax credits work and staying up-to-date with current rates and regulations can lead to substantial savings. Read on to find out how.
Key information on claiming fuel tax credits
The amount of money you can claim back on the fuel tax you pay as business changes over time. The rates are adjusted twice a year, in February and August based on inflation, using a measure called the Consumer Price Index (CPI). For example, from March to September 2022, the government temporarily lowered the tax on fuel, which also affected how much businesses could claim back during that time. If you use heavy vehicles on public roads, these rates also change depending on the road tax and rates for biodiesel (B100) will change each year until 1 July 2030.
What does this mean for businesses?
Before claiming fuel tax credits, businesses must verify the current rates and confirm their eligibility to ensure accurate claims. If you’re uncertain about your eligibility or need assistance with your claims, we can guide you through the process to ensure accuracy and maximise the benefits for your business.
Current fuel tax credit rates for businesses
When calculating your fuel tax credits, it’s essential to use the specific rate that was in effect on the exact date you purchased or acquired the fuel. Below are the rates for the period 1 July 2024 to 2 February 2025.
Rates for fuel acquired 1 July 2024 – 4 August 2024
- Liquid fuels (diesel or petrol) in cents per litre:
-19.1 for heavy vehicles
-49.6 for all other business uses - Blended fuels (B5, B20, E10) in cents per litre:
– 19.2 for heavy vehicles
-49.6 for all other business uses - Blended fuels (E85) in cents per litre:
– 0 for heavy vehicles
– 21.295 for all other business uses - Liquefied petroleum gas in cents per litre
-0 for heavy vehicles
-16.2 for all other business uses - Liquefied natural or compressed natural gas in cents per litre
-0 for heavy vehicles
-34.0 for all other business uses - B100 in cents per litre
-0 for heavy vehicles
-14.9 for all other business uses
Rates for fuel acquired 5 August 2024 – 2 February 2025
- Liquid fuels (diesel or petrol) in cents per litre:
-20.1 for heavy vehicles
-50.6 for all other business uses - Blended fuels (B5, B20, E10) in cents per litre:
-20.1 for heavy vehicles
-50.6 for all other business uses - Blended fuels (E85) in cents per litre:
-0 for heavy vehicles
-21.7 for all other business uses - Liquefied petroleum gas in cents per litre
-0 for heavy vehicles
-16.5 for all other business uses - Liquefied natural or compressed natural gas in cents per litre
-0 for heavy vehicles
-34.7 for all other business uses - B100 in cents per litre
-0 for heavy vehicles
-15.2 for all other business uses
Staying up-to-date with fuel tax credit rates is essential for maximising the benefits available to your business. It’s also important to keep in mind the rules and regulations that govern these credits, as failing to comply can result in missed opportunities or potential penalties. For example, if your business wants to claim fuel tax credits for fuel you purchased in the past, you have up to four years from the due date of the earliest Business Activity Statement (BAS).
Whether it’s managing your claims or making necessary adjustments, staying informed and seeking professional guidance can help ensure that your business fully leverages the fuel tax credits it’s entitled to.
For more information on fuel tax credit rates speak with your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au
