Fuel tax credit rates have changed.

As announced in the 2022-23 Federal Budget, fuel excise and excise equivalent customs duty (excise) rates for petrol, diesel and all other fuel and petroleum-based products, except aviation fuels, will be halved temporarily for 6 months, from 30 March to 28 September 2022.

Fuel tax credits (“FTC”) provide businesses with a credit for the excise that is included in the price of fuel if the fuel is used in light vehicles travelling off public roads or on private roads, heavy vehicles, or certain non-vehicle settings (machinery, plant and equipment).

During this temporary 6 month period, businesses using fuel in heavy vehicles for travelling on public roads won’t be able to claim fuel tax credits.  This is because the road user charge exceeds the excise duty payable, and this reduces the FTC rate to nil.

The FTC rates changed on 1 February and 30 March 2022, so 3 different rates may apply to your March quarter Business Activity Statement as the rates are based on when the fuel was acquired.  Refer to the below tables for the different rates over the last quarter.

Table 1: Rates for fuel acquired from 30 March 2022 to 28 September 2022:

Table 2: Rates for fuel acquired from 1 February 2022 to 29 March 2022:

Table 3: Rates for fuel acquired from 2 August 2021 to 31 January 2022:

If you require any further information regarding fuel tax credits, including eligible fuels, definition of heavy vehicles etc, please don’t hesitate to get in touch with us.