Fuel tax credit rates changed six times between July 2025 and August 2026. If your business claimed one rate for the whole quarter, there is a fair chance the BAS figure is wrong in one direction or the other.
This guide explains the current rates and their effective dates, why heavy vehicle rates differ, who is eligible, and how to use the ATO calculator for 2025-26 and 2026-27 claims. Rates were checked against the ATO fuel tax credit rates for business pages.
It is written for tradies, farmers, transport operators and anyone running machinery who claims on their BAS. For a broader overview of the scheme, read our fuel tax credits guide.
Key takeaways
- From 3 August 2026, liquid fuels in all other business uses earn 53.7c per litre; heavy vehicles on public roads earn 21.3c.
- The road user charge is 32.4c per litre from 3 August 2026, after a temporary cut to zero (April to June) and 16.4c (July).
- Light vehicles of 4.5 tonnes GVM or less on public roads cannot claim.
- Use the rate for the date you acquired the fuel; claims under $10,000 a year can use the end-of-period rate.
- You must be registered for GST and fuel tax credits, and claim within four years.
Fuel tax credit rates at a glance (liquid fuels, cents per litre)
| Fuel acquired | Heavy vehicles on public roads | All other business uses |
|---|---|---|
| 1 July to 3 August 2025 | 18.4 | 50.8 |
| 4 August 2025 to 1 February 2026 | 19.2 | 51.6 |
| 2 February to 31 March 2026 | 20.2 | 52.6 |
| 1 April to 30 June 2026 (excise relief) | 20.6 | 20.6 |
| 1 July to 2 August 2026 (excise relief) | 20.2 | 36.6 |
| From 3 August 2026 | 21.3 | 53.7 |
Source: ATO rates 1 July 2025 to 30 June 2026, ATO rates 1 July 2026 to 30 June 2027, checked 9 October 2026. Liquid fuels include diesel, petrol and B5, B20 and E10 blends.
Why do fuel tax credit rates change so often?
The credit refunds the fuel excise or customs duty built into the fuel price. Excise is indexed to CPI twice a year, so credit rates normally move in early February and early August.
Two other things moved rates in the past 18 months:
- Road user charge: it rose to 32.4c per litre for 2025-26 after rising 6% a year over the three years from 2023-24.
- Excise relief: from 1 April to 30 June 2026 excise was more than halved and the road user charge was set to zero. From 1 July to 2 August 2026, excise and the road user charge were both cut by 16c. Normal rates resumed from 3 August 2026.
If you use our BAS calculation guide, check that your fuel figures are split by these date ranges.
How does the road user charge reduce heavy vehicle credits?
Heavy vehicles travelling on public roads pay a road user charge, which comes off the credit. From 3 August 2026 the charge is 32.4c per litre, so the on-road credit is 53.7c – 32.4c = 21.3c. Where the road user charge exceeds the credit rate, the credit is reduced to nil, which is why some gaseous fuels and E85 show 0 for on-road use.
Fuel used off public roads, such as machinery on a farm, construction site or private road, gets the full all other business uses rate.
| Activity | Example | Rate from 3 August 2026 (liquid fuels) |
|---|---|---|
| Heavy vehicle over 4.5 tonnes GVM on public roads | Prime mover, tipper truck | 21.3c per litre |
| All other business uses | Excavator, tractor, generator, site pump | 53.7c per litre |
| Light vehicle (4.5 tonnes GVM or less) on public roads | Tradie ute driving between jobs | Not eligible |
| Light vehicle off public roads | Farm ute used only on the property | 53.7c per litre |
Who is eligible for fuel tax credits?
- Your business must be registered for GST when it acquires the fuel and for fuel tax credits when it claims
- Fuel must be used in carrying on your business
- Heavy vehicles must have a GVM over 4.5 tonnes (diesel vehicles acquired before 1 July 2006 can equal 4.5 tonnes)
- Heavy diesel vehicles manufactured before 1 January 1996 may need to meet an environmental criterion
- Machinery, plant, equipment, and light vehicles off public roads qualify at the all other business uses rate
Light vehicles of 4.5 tonnes GVM or less travelling on public roads are not eligible. Details are on the ATO’s road transport eligibility page and business.gov.au. Not registered for GST yet? See our GST registration guide.
How do you use the ATO fuel tax credit calculator?
The ATO recommends its fuel tax credit calculator for every claim. The method it follows has three steps:
- Work out eligible litres for each activity, removing private use, ineligible activities and lost fuel.
- Pick the rate that applied when you acquired the fuel.
- Multiply and add up: litres x rate / 100, then report the whole-dollar total at label 7D on your BAS.
Run separate lines for each activity and each rate period, and save the calculator output with your BAS working papers. The ATO’s working out your fuel tax credits page explains acceptable apportionment methods.
Worked example: a September 2026 quarter BAS
A civil works business runs a heavy tipper on public roads and an excavator on site. In the July to September 2026 quarter it acquires:
Tipper (heavy vehicle, public roads): 8,000 L in July at 20.2c = $1,616, and 16,000 L from 3 August at 21.3c = $3,408.
Excavator (all other business uses): 2,000 L in July at 36.6c = $732, and 4,000 L from 3 August at 53.7c = $2,148.
Total for label 7D: $1,616 + $3,408 + $732 + $2,148 = $7,904.
Using one rate for all fuel would have given the wrong answer. Because this business claims more than $10,000 a year, it cannot use the simplified end-of-period rate.
What simplified methods can small claimants use?
If you claim less than $10,000 in fuel tax credits a year, the ATO’s simplified fuel tax credits rules let you:
- Use the rate in effect on the last day of the BAS period for all fuel in that period
- Estimate litres from total fuel spend divided by the average fuel price
- Rely on bank statements or dockets that show only dollar amounts, if you can show business use
Rule of thumb: Split your fuel by vehicle type and by the dates rates changed before you open the calculator. Ten minutes of sorting receipts saves most errors.
How long do you have to claim?
Four years. The ATO’s claiming page says the period starts the day after you were required to lodge the BAS for the period in which you acquired the fuel. Our activity statement guide covers lodging and correcting BAS.
Common mistakes with fuel tax credits
- One rate for the quarter: rates changed mid-quarter in August 2025, February 2026 and August 2026.
- Claiming the ute: light vehicles on public roads are not eligible.
- Using the on-road rate off-road: site machinery gets the higher all other business uses rate.
- Claiming private fuel: remove private use before calculating.
- Weak records: keep invoices and usage logs; our tax audit preparation guide and work-related expenses guide explain good record keeping.
FAQ about the fuel tax credit calculator
How often do fuel tax credit rates change?
Rates for most fuels are indexed twice a year, in early February and early August. In 2025-26 and 2026-27 they changed more often because the road user charge rose on 1 July and the government cut fuel excise and the road user charge temporarily from 1 April to 2 August 2026. Always use the rate for the date you acquired the fuel.
What is the current rate for diesel used off-road?
For fuel acquired from 3 August 2026, the ATO rate for liquid fuels such as diesel used in all other business uses (for example, machinery on a work site) is 53.7 cents per litre. For heavy vehicles travelling on public roads it is 21.3 cents per litre, because the 32.4 cent road user charge is taken off. Check the ATO rates page before each BAS.
Can I claim fuel tax credits for my ute?
Not for travel on public roads if the ute is a light vehicle of 4.5 tonnes gross vehicle mass or less. The ATO allows credits for light vehicles only when they travel off public roads or on private roads, such as on a farm or work site. Heavy vehicles above 4.5 tonnes GVM used in a business can claim at the on-road rate.
Do I have to split fuel bought before and after a rate change?
Generally yes, because the rate depends on when you acquired the fuel. If you claim less than $10,000 in fuel tax credits a year, the ATO lets you use the rate in effect on the last day of the BAS period for all fuel in that period instead. The ATO calculator can apply this simplified method for you.
How far back can I claim missed fuel tax credits?
You must claim within four years. The ATO says the period starts the day after you were required to lodge the BAS for the tax period in which you acquired the fuel. Missed credits can be claimed in a later BAS within that window, provided you were registered for GST when you acquired the fuel and for fuel tax credits when you claim.
Talk to specialist before it costs you
15-minute discovery call. No obligation, no jargon.
Talk to a registered tax agent
Nanak Accountants can review your fuel tax credit claims, split fuel by rate period and correct earlier BAS within the four-year limit. Call 1300 626 258 or book a free 15-minute consultation.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO fuel tax credit rates, eligibility, working out, simplified methods and claiming pages, and the federal fuel excise relief fact sheet on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
