Claiming Fuel Tax Credits When Rates Change

Fuel tax credit rates changed on 3 February. Taxpayers could receive more savings for fuel they have acquired on and from this date. They should make sure they are using the correct rate to ensure their claim is correct.

Different rates apply based on the type of fuel, when it was acquired and what activity it is used for.

When making a claim on their BAS, it is important for taxpayers to ‘get it right’ so they can receive their full entitlement. The ATO has the following tips for taxpayers to ensure they are claiming correctly.

• They can use the ATO’s ‘eligibility tool’ on its website to find out if they can claim fuel tax credits for fuel they have acquired and used. Diesel exhaust fluids (such as Adblue or other additives) are not taxable fuels, and taxpayers cannot claim credits for them as they do not attract excise duty.
• They can use the ATO’s online fuel tax credit calculator to work out their claim. This calculator will automatically apply the right rate based on when they acquired fuel and the activity it was used for. It can help taxpayers easily work out any adjustments for fuel tax credits from a previous BAS.
• They can lodge their BAS via online services or a registered tax or BAS agent. This could allow them extra time to lodge and pay.

Taxpayers who already lodge their BAS online but still receive a paper BAS should update their ATO communication preferences from ‘paper’ to ‘online’. This will allow them to receive correspondence more quickly from the ATO, receive less paper and save time from filing these documents.

Taxpayers can refer to ‘Tips to get your fuel tax credits right’ on the ATO’s website for further assistance in this regard.