If your business relies on fuel to operate, recent changes to the Australian Taxation Office (ATO) Fuel Tax Credit rates could affect the amount you’re entitled to claim.
While the updates may appear small, they can have a noticeable impact on your business over time—particularly if you have significant fuel expenses.
What Has Changed?
Following the temporary reduction in fuel excise and excise-equivalent customs duty rates, the ATO updated the Fuel Tax Credit rates for fuel purchased between 1 April and 30 June 2026.
The impact varies depending on how your business uses fuel.
Businesses Using Fuel Off Public Roads
If your business uses fuel in machinery, equipment, or vehicles that operate off public roads, your Fuel Tax Credit is generally lower under the updated rates.
The applicable rate during this period is 20.6 cents per litre.
Businesses Operating Heavy Vehicles on Public Roads
Businesses operating eligible heavy vehicles on public roads may receive a slightly higher Fuel Tax Credit entitlement.
This is due to the temporary reduction in the road user charge, which increases the amount that can be claimed for eligible fuel purchases.
An Important Detail Many Businesses Overlook
One of the most common mistakes is assuming Fuel Tax Credits are based on when the fuel is used.
In reality, Fuel Tax Credits are calculated based on the date the fuel was purchased, not when it was consumed.
This distinction can affect your Business Activity Statement (BAS), particularly if your fuel purchases span different reporting periods or rate changes.
Checking your purchase dates carefully can help ensure you’re claiming the correct amount and reduce the risk of errors.
Why It Matters
For businesses with high fuel consumption, even a small change in the credit rate can add up over the course of a year.
Reviewing your Fuel Tax Credit entitlement can help you:
- Maximise eligible claims.
- Improve cash flow.
- Avoid BAS reporting errors.
- Better manage rising operating costs.
Managing Business Costs
Fuel is just one of many operating expenses that continue to affect Australian businesses. If increasing costs are putting pressure on your cash flow, the right finance solution may help you maintain working capital and keep your business moving forward.
Whether you’re looking to purchase equipment, finance vehicles, or improve cash flow, exploring your finance options could make a meaningful difference.
We’re Here to Help
If you’d like to discuss finance options that can help your business manage rising expenses, we’d be happy to help.
Get in touch with our team today to explore solutions tailored to your business needs.
Disclaimer: This article is intended for general information only and does not constitute financial, taxation, or legal advice. Fuel Tax Credit eligibility depends on your individual circumstances. You should seek advice from a registered tax professional or refer to the Australian Taxation Office (ATO) before making any decisions. Any finance is subject to lender approval, eligibility criteria, and applicable terms, conditions, fees, and charges.
