What are Fuel Tax Credits?
Fuel tax credits provide your business with a credit for the fuel tax (excise) included in the fuel price. The excise is paid at the pump and, subject to certain conditions, refunded by the Australian Tax Office (ATO) via your BAS. It's not a full refund for the use of heavy vehicles on public roads. Deducted from the refund is the government imposed road user charge.
What has changed?
The fuel tax credit rate has been temporarily reduced (from 30 March to 28 September), resulting in 0c per litre for heavy vehicles travelling on public roads.
This is because the road user charge exceeded the excise duty paid, reducing the fuel tax credit rate to nil. This does not apply to fuel used in heavy vehicles for powering auxiliary equipment of a heavy vehicle while travelling on a public road. Here are the details:
| Previous rates | Current rates | |
| FTC Rates used in heavy vehicles for travelling on public roads | 30 March to 28 September 2022 | From 29 September 2022 |
| Cents / litre | Cents / litre | |
| Fuel Excise | 22.1 | 46 |
| Road User Charge | 26.4 | 27.2 |
| 'On-road' Rate | 0 | 18.8 |
What are 'off-road' areas for FTC?
Off-road areas are any travel off a public road, for example:
| · Truckstop · Vehicle depot · Farm · Mining site · Quarry |
· Logging site · Construction site · Loading dock · Private road · Council refuse site |
Claim more with Auxiliary use
If your business has auxiliary use, you can claim up to 46 cents per litre. The FTC Rate for auxiliary use is not reduced by the road user charge, even if this takes place on public roads.
5 % Claim for Long haul vehicles with sleeper cabins
Air-conditioner units moderate the temperature of a vehicle's sleeping compartment when the driver is on a sleeping break during a long-haul trip. The vehicle must use fuel to power the air conditioner during the sleeping break of a long-haul trip.
What does it mean for my business? Can I make a retrospective claim?
Suppose you have either under-claimed in previous periods at the standard on-road rate or not at all. If you can show a consistent use pattern for six months, you may be entitled to claim retrospective FTC rebates.
What do I need to do to make an FTC retrospective claim?
Information required includes how much fuel is used when purchased and off-road activity. If you have not kept records of that over the past four years, capture a consistent pattern of the use for six months which can then be used to make a retrospective claim on off-road use for the previous four years.
Even if you've previously submitted a claim if you can show usage data for six months to show a consistent pattern, use it can then be used to claim off-road FTC rebates for up to four years.
Where to get help?
Most businesses underestimate claims due to the lack of evidence. As a result, many organisations underclaim their entitled rebate in fear of being unable to validate theirs with the Australian Taxation Office.
