Fuel Tax Credit Rates 2026: Are You Using the Right Rate?

If your business claims fuel tax credits, make sure you use the correct fuel tax credit rates before lodging your next BAS. Fuel tax credit rates changed again on 3 August 2026. The latest change followed several rate movements during 2026, making it particularly important for businesses to check which rate applies to each fuel purchase. Using the wrong rate could mean your business claims too much or misses out on fuel tax credits it may be entitled to claim.

Fuel tax credit rates can change for several reasons. The rates generally undergo CPI indexation in February and August. Rates for fuel used in heavy vehicles travelling on public roads can also change when the road user charge changes. The 3 August 2026 changes also followed the end of temporary fuel excise relief. As a result, businesses need to take extra care when calculating claims for fuel acquired across different rate periods in 2026.

For many businesses, timing creates the biggest risk of getting a fuel tax credit claim wrong. You need to use the fuel tax credit rate that applied on the date you acquired the fuel, rather than the date you actually used it.

This means one BAS may include fuel purchases that fall under different fuel tax credit rates. For example, if your business purchased fuel before and after 3 August 2026, you may need to apply different rates to those purchases when calculating your claim.

The rate you can claim depends on the type of fuel and how you use it. For eligible liquid fuels such as diesel and petrol acquired from 3 August 2026, the fuel tax credit rate is 53.7 cents per litre for all other business uses, including eligible fuel used to power auxiliary equipment in a heavy vehicle.

For eligible liquid fuel used in heavy vehicles travelling on public roads, the rate from 3 August 2026 is 21.3 cents per litre.

By comparison, between 1 July and 2 August 2026, the rates for eligible liquid fuels were 36.6 cents per litre for all other business uses and 20.2 cents per litre for heavy vehicles travelling on public roads. Different rates apply to some other fuels and uses, so businesses should check the applicable rate rather than assuming one rate applies to every fuel purchase.

Fuel tax credit changes can affect businesses across many industries. Businesses with significant fuel use should pay particular attention to their claims, especially if they purchase fuel regularly, operate heavy vehicles or use fuel in machinery, equipment or other eligible business activities. Businesses that purchase or store fuel in bulk should also maintain clear records so they can identify when they acquired the fuel and determine which rate applies.

Good records make it much easier to calculate your fuel tax credit claim accurately. Your records should allow you to identify relevant information about your fuel purchases and business use so you can apply the appropriate fuel tax credit rate. This becomes particularly important when your BAS period covers more than one rate change. Rather than applying the latest rate to all fuel used during the BAS period, check when you acquired the fuel and apply the rate that relates to that period.

Businesses that operate heavy vehicles on public roads need to take particular care with their fuel tax credit calculations. Fuel tax credit rates for fuel used in heavy vehicles travelling on public roads take the road user charge into account. Changes to the road user charge can therefore change the amount your business can claim. This is also why you shouldn’t assume the fuel tax credit rate for a truck travelling on a public road will equal the rate available for fuel used for another eligible business purpose.

With several fuel tax credit rate changes occurring during 2026, using an old spreadsheet, previous BAS calculation or saved rate could result in an incorrect claim. Instead, check the applicable rate each time you prepare your fuel tax credit calculation.

The ATO recommends using its fuel tax credit calculator. The calculator applies the relevant rates based on when you acquired the fuel and can calculate the amount to include in your BAS.

Fuel tax credits can provide valuable relief for eligible businesses, but changing rates can make calculating a claim more complicated. If your business acquired fuel across several rate periods, operates heavy vehicles, buys fuel in bulk or uses different types of fuel, take the time to check your calculations before lodging your BAS.

If you’re unsure whether your business is using the correct fuel tax credit rates or claiming all the fuel tax credits it may be entitled to, talk to us. We can help you review your fuel tax credit calculations and make sure you apply the correct rates to your BAS.