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When you claim fuel tax credits for your clients, you’ll need to apply the lower rates for fuel acquired from 30 March 2022 to 28 September 2022.

The lower rates for fuel tax credits are the result of halving the fuel excise duty for six months. The reduced rates apply to petrol, diesel, and all other petroleum-based products except aviation fuels.

We’ve attached a list to confirm which of your clients are affected by this change.

You won’t be able to claim fuel tax credits for fuel use in heavy vehicles for travelling on public roads. This is because the road user charge exceeds the excise duty paid, which reduces the fuel tax credit rate to nil.

What you need to do

When you’re calculating fuel tax credits:

  • Apply the lower rates for fuel acquired after 30 March; using the fuel tax calculator is the easiest way to do this.
  • Remind your clients to keep accurate records to support their claims. Their records must show the type, date, and quantity of fuel acquired for business activities.
  • If you or your client used the wrong rates in a previous BAS, it can be corrected on the next BAS.

Should you have any queries, please do not hesitate to contact AFP.

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