Fuel Tax Credit Calculator
ATO Fuel Tax Credit Calculator
This tool was last updated in February 2023. Please note that until February 2022 the FTC rate for offroad diesel and petrol use in Australia was 44.2 cents per litre. From March 2022 the rate dropped to 22.1 cents per litre (there was a temporary reduction in fuel excise at point of sale for all fuel users at this time). In September 2022 the fuel excise was reinstated, and it has most recently been adjusted to a rate of 47.7 cents per litre.
The tool below will perform a fuel tax credit calculation based on the ATO’s current fuel tax credit rates. Simply enter how many litres your operation uses per year, how much is for onroad vs. offroad purposes, and what proportion can actually be reconciled to the machine that consumed it.
If you are trying to calculate the fuel tax credit for your BAS in the FY22 and FY23 periods, there are, unfortunately, multiple rates that apply based on when the fuel was purchased. To see the summary tables on the ATO website then click here for the fuel tax credit rates.
Fuel Tax Rebates and Rates from the ATO
It is important to be able to calculate the potential Fuel Tax Credit rebate available to your organisation for Petrol or Diesel used for business purposes. With worldwide prices headed the way they are, companies need to maximise their ATO fuel credits. Fuel tax credits provide businesses with a credit for the fuel tax that’s included in the price of fuel used in:
- Machinery / Plant / Ancillary Equipment
- Heavy Vehicles
- Light Vehicles
The amount that can be claimed depends on a few different factors, like when you acquired the fuel and what your company uses it to do. For example, fuel consumed on public roads is not eligible for the same fuel tax rebate as fuel used for offroad business purposes.
Fuel tax credit claims are processed as part of your business activity statement (BAS). You can check the rates with the ATO, but we have also created this handy fuel tax credit calculator so you can quickly determine what kind of fuel tax rebate you might be eligible for. Our fuel tax credit calculator is based of the Australian Tax Offices’ current rates and policies, which are usually updated twice a year.
Fuel Tax Credits, also known as fuel tax rebates, can represent a very significant value to businesses. The highest rates are available for eligible fuels used to power heavy machinery, plant, light vehicles, and other machinery not used on public roads. For many businesses, these fuel costs are the number one operational expense. Being able to perform a fuel tax credit calculation and budget for the rebate is really important for financial planning. Furthermore, correctly reconciling the fluids you purchase to the fuel-consuming asset is even more important. High fuel reconciliation rates mean the maximum appropriate fuel tax credit claim can be made and that you can rest assured everything is above board when it comes time to be audited.
The Australian Tax Office (ATO) reimburses companies through rebates at a certain number of cents per litre based on how each kind of fluid was actually used within the operation. Our Fuel Tax Credit calculator has been updated with the current rates published by the ATO. With fuel prices climbing so steeply and companies still needing to fill the tanks, appropriately maximising your rebates can equate to hundreds of thousands of dollars per year, sometimes more.
There are two requirements for eligibility that must be satisfied for a business to claim Fuel Tax Credits in Australia:
- The business claiming the credits must be registered for GST when the fuel was acquired
- The business claiming the rebate must be registered for fuel tax credits when the claim is lodged
Banlaw strongly encourages all fuel-consuming businesses to use a fuel management system that measures fuel usage from buy to burn, ensures high fuel reconciliation rates, and provides trustworthy, audit-ready data.
Fuel tax credit program and eligibility rules can be found here on the Australian Tax Office website.
For more information about maximising your fuel tax credits view our article on receiving your full FTC entitlement here.