Do you claim Fuel Tax Credits for fuel you use in your heavy vehicle, farm equipment or other machinery for your business? Do you know that you can simplify how you keep records and calculate your fuel tax credit claims?

The fact is businesses that claim less than $10,000 in fuel tax credits each year can calculate claims using the increased rates that apply at the end of the BAS period. When there is a change of rate during the business activity statement (BAS) period (e.g. in February and August), you can calculate your fuel tax credit claim by using the rate that applies at the end of the period.

There is no need to split your fuel purchases during the period and use two different rates. Simply total your litres for the period and use the rate that is current on the last day of the BAS period to work out your claim.

Tools such as the ATO's Fuel Tax Credit Calculator can assist with calculating this method. Simply enter all of your fuel into the final rate period and the calculator will use the right rates to work out how much you should enter on your BAS.

There are more ways that you can simplify your fuel tax credit calculations and claims, including some that are available to all businesses no matter how much you claim. To learn more, or have a question about any of the above, please contact us at Murray Nankivell by email on or by phone on (08) 8765 7777, or you can visit the ATO website.


About the Author – Catherine Brook


GENERAL ADVICE WARNING | The information contained in this article is general and is not intended to serve as advice. No warranty is given in relation to the accuracy or reliability of any information. Readers should not act or fail to act on the basis of information contained herein. Readers are encouraged to contact a professional advisor for advice concerning specific matters before making any decision.