Fuel Tax Credits: Maximising Your Claim

Fuel tax credits provide businesses operating within the transport and logistics industries with a rebate on the fuel tax (excise or customs duty) included in the price of fuel which is used for business purposes. For information on the latest fuel tax credit rates from February 2025, please refer to our latest blog on our website.

Most business operators will be familiar with the fuel tax credit rebate, which is claimed on their monthly or quarterly business activity statements. However, many businesses may not be receiving the maximum rebate available to them due to a variety of reasons, including lack of or accurate record keeping or failure to leverage available technology.

Are you maximising your claim?

When preparing your fuel tax credit rebate claim are you ensuring you receive the maximum rebate available, or are there opportunities to increase your rebate?

Fuel Used to Power Auxiliary Equipment

If your vehicle uses fuel to power auxiliary equipment and the fuel usage can be separately measured, this fuel can be claimed at the off-road rate, even if the truck is predominately driven on public roads. We commonly find that many business owners assume that maintaining accurate records for this purpose is too difficult and time consuming, potentially leading to missed fuel tax credits which could have been claimed.

Fuel Used from Farm Gate to Delivery Point

Business operators may be missing out on significant refunds if off-road usage is incorrectly claimed at on-road rates due to a lack of understanding of the scheme or insufficient record-keeping. For example, if a truck travels from a public road onto a farm to make a delivery, the fuel used from the farm gate to the delivery point and back again will be eligible to be claimed at the off-road rate. While these distances may seem minor, they can accumulate over time, resulting in substantial lost refunds.

How Can Technology Help with Fuel Tax Credit Claims

Advancements in technology, such as GPS tracking and fuel usage monitoring, have made it easier than ever to accurately record fuel consumption for a vehicle fleet for different uses. Businesses can maximise their fuel tax credit refunds utilising the detailed on-road, off-road and auxiliary fuel usage reporting. By using technology driven solutions, businesses can:

• Accurately track on-road and off-road fuel usage.
• Establish idle fuel consumption usage for both on-road and off-road usage.
• Establish auxiliary equipment fuel consumption.
• Maintain accurate and reliable records to support fuel tax credit claims.
• Reduce manual record keeping and the time required to complete the records.

By making greater use of technology, businesses can effectively establish fuel usage patterns across their vehicle fleet, which not only maximises their current fuel tax credit claims, but the pattern of fuel usage can be retrospectively applied to prior claims. The fuel usage pattern can be used to determine whether additional fuel tax credits could have been claimed, ensuring businesses are optimising their rebates.

What If You Have Underclaimed Fuel Tax Credits - What Can You Do?

If you have realised that you have underclaimed fuel tax credits, the good news is that you can make amendments to your claim for any period within the previous four years. The four-year amendment period begins from the day after you lodge your business activity statement for the tax period that you purchased the fuel. Any underclaimed fuel tax credits can be adjusted on your next Business Activity Statement.

There are a number of methods which can be used to accurately estimate fuel usage for the purpose of determining allowable additional fuel tax credits which have been missed. These range from using actual usage methods to apportionment methods. Choosing the right method depends on the complexity of your business’s fuel use, the amount you are claiming and the resources available for record keeping.

For More Information

For more information on your eligibility to claim additional Fuel Tax Credits or an initial consultation to discuss a review of your fuel tax credit claims, please contact Greg Rankin (Manager) or Smiljan Jankovic (Managing Director) on (07) 3002 2699 | info@agredshaw.com.au.