Fuel tax credit rates increased from 2 February 2026. If your business claims fuel tax credits in Australia, applying the updated rate is essential to ensure you receive your full entitlement and avoid errors when lodging your Business Activity Statement (BAS).
Using the incorrect fuel tax credit rate may result in under-claiming, over-claiming, or ATO compliance issues.
What Are Fuel Tax Credits?
Fuel tax credits allow eligible Australian businesses to claim a credit for the fuel tax (excise or customs duty) included in the price of fuel used in business activities.
The rate you can claim depends on:
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Whether fuel is used on public roads
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Whether fuel is used off public roads
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Whether fuel powers auxiliary equipment
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The type of fuel used
Because rates change periodically, it’s important to apply the correct rate for the period in which the fuel was acquired.
What Changed in February 2026?
From 2 February 2026, updated fuel tax credit rates apply. Businesses must ensure:
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The correct rate is used for fuel acquired from this date
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Claims are calculated accurately in the relevant BAS period
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Apportionment between on-road and off-road use is correct
The ATO fuel tax credit calculator automatically applies the correct rate and can assist with simplified methods for claims under $10,000.
Common Fuel Tax Credit Mistakes to Avoid
Businesses often make errors when:
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Failing to separate on-road and off-road fuel use
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Claiming the wrong rate after a rate change
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Not keeping sufficient fuel purchase records
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Incorrectly calculating auxiliary equipment usage
Accurate record-keeping and correct apportionment are essential to support your claim.
How to Ensure Your Fuel Tax Credit Claim Is Correct
To reduce compliance risk:
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Review how fuel is used in your business
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Confirm the updated rate is being applied
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Maintain clear records of fuel purchases and usage
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Check calculations before lodging your BAS
If you are unsure whether your fuel tax credits are being claimed correctly, a review before lodging your next BAS can prevent costly corrections later.
