Fuel Tax Credits & Excise Relief in Australia 

Reduce Your Fuel Costs — Maximise Business Efficiency

The Australian Government offers several fuel rebate programs to help offset fuel excise costs and encourage environmental sustainability. These schemes are primarily designed to support businesses, non-profits, and recyclers through fuel tax credits and product stewardship incentives.

1. Fuel Tax Credits for Businesses

Fuel tax credits (FTC) provide a refund for the excise or customs duty included in the price of fuel used in eligible business operations. This includes fuel used in:

  • Heavy vehicles (above 4.5 tonnes) travelling on public roads

  • Plant and machinery (e.g., tractors, excavators, generators)

  • Commercial marine vessels, trains, and other off-road equipment

Eligible Fuels

  • Diesel

  • Petrol (in some off-road uses)

  • Blended fuels (e.g., biodiesel)

  • Gaseous fuels (e.g., LPG, LNG, CNG)

  • Heating oil and kerosene

Credit rates vary depending on fuel type, usage, and whether the fuel is used on or off public roads. Current rates are indexed every six months (February and August), and are published on the ATO website.

💡 Road user charge applies: For heavy vehicles travelling on public roads, a road user charge is deducted from the total credit.

2. Fuel Tax Credits for Non-Business Use

Fuel tax credits are also available in limited non-business situations, including:

  • Non-profit organisations using fuel for emergency services (e.g., fire trucks, rescue vessels)

  • Fuel used to generate electricity in off-grid domestic settings, particularly in remote areas

Credits in this category are subject to stricter eligibility and usage rules. Documentation of use and fuel purchase is essential.

3. Product Stewardship for Oil (PSO) Program

The Product Stewardship for Oil (PSO) Scheme encourages the responsible recycling and reuse of used oils. It provides a benefit (financial incentive) for manufacturers and recyclers who collect, recycle, and refine used oils into sustainable products.

Eligible participants include:

  • Oil recyclers and refiners

  • Industrial waste management companies

  • Oil manufacturers who incorporate recycled content

Recyclers must meet environmental and operational standards to claim the benefit, which varies depending on the method and quality of oil recovery.

How We Can Help

At Complete Tax & Financial Services, we help businesses and eligible organisations:

  • Determine eligibility for fuel tax credits or oil stewardship benefits

  • Correctly classify fuel usage (on-road vs off-road)

  • Maintain accurate fuel usage records and claim documentation

  • Calculate and submit claims via Business Activity Statements (BAS)

  • Stay updated on rate changes and compliance obligations

📞 Contact us today to ensure you're not leaving money on the table when it comes to fuel tax relief.

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