Australian Taxation Office – Using the right fuel tax credit rates

What are the changes to fuel excise?

The government has reduced excise and excise‑equivalent customs duty rates on petrol and diesel by a total of 60.9%. The rates were initially reduced by 50%, followed by a further 10.9% reduction.

When do these changes apply?

These changes are from 1 April to 30 June 2026.

What if I claim fuel tax credits on my BAS?

If your business claims fuel tax credits on its business activity statement (BAS), it’s important to understand how the temporary fuel excise reduction affects your fuel tax credits.

Will I receive a lower fuel tax credit?

If your business uses petrol and diesel for any business activities other than for travelling on public roads, you will receive a lower fuel tax credit because the fuel excise has been reduced.

How much can I claim?

You will claim 20.6 cents per litre.

What about heavy vehicles?

Operators of heavy vehicles (with a GVM greater than 4.5 tonnes) acquiring fuel for use for travelling on public roads will see a small increase in their fuel tax credit for 3 months. This is because the road user charge, which normally reduces their credit, has been temporarily set to zero during this period. As a result, for petrol and diesel they will claim 20.6 cents per litre instead of 20.2 cents per litre.

How are credit rates calculated?

Fuel tax credit rates are based on the date you acquired the fuel. Different rates apply before 1 April 2026 and from 1 April to 30 June 2026.

How do I calculate the correct rates?

Keep accurate records and use the ATO’s fuel tax credit calculator to apply the correct rates. The calculator has been updated with the new rates for this period.

More information: Visit the ATO website

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