Fuel Tax Credits: Aussie Business Guide to Claiming in August 2025

Fuel costs are a significant expense for many Australian businesses. Fortunately, the Fuel Tax Credit scheme offers a valuable opportunity to recoup some of these costs. This guide, updated for August 2025, provides a comprehensive overview of the Fuel Tax Credit system, helping you understand your eligibility and maximise your claims.

Understanding Fuel Tax Credits

The Fuel Tax Credit scheme provides businesses with a credit for the fuel tax (excise or customs duty) included in the price of fuel used in eligible activities. The amount you can claim depends on the activity you undertake, the type of fuel you use, and when you acquired the fuel.

Eligibility: Who Can Claim?

To be eligible for Fuel Tax Credits, you must:

• Be registered for GST.
• Be carrying on an enterprise.
• Acquire fuel for use in carrying on your enterprise.
• Use the fuel in an eligible activity (e.g., agriculture, mining, construction, transport).

Certain activities, such as using fuel in vehicles travelling on public roads, have specific restrictions or lower credit rates. It's crucial to understand these nuances to ensure accurate claims.

Current Fuel Prices and Their Impact

With fuel prices fluctuating constantly, understanding the current market is essential for budgeting and accurately calculating your Fuel Tax Credit claims. As of today, August 2025, we're seeing considerable variation across capital cities. For instance, Unleaded 91 prices are currently 14.9% higher in Brisbane (184.8 cpl) than in Perth (160.81 cpl). Premium 98 prices also show a significant difference, with Darwin (219.92 cpl) being 18.8% more expensive than Perth (185.11 cpl). Diesel is currently 9.3% more expensive in Canberra (193.47 cpl) compared to Adelaide (177.05 cpl). In Sydney, Premium 95 (182.11 cpl) costs 8.9% more than Unleaded 91 (167.27 cpl). Brisbane motorists can save 1.5% by choosing E10 (181.98 cpl) over Unleaded 91 (184.8 cpl). Adelaide currently offers the cheapest prices for 3 different fuel types, making it Australia's most affordable capital city for motorists. The top 3 cheapest capital cities for Unleaded 91 are currently Perth (160.81 cpl), Adelaide (166.45 cpl), and Sydney (167.27 cpl). These variations underscore the importance of tracking fuel prices and purchasing strategically.

Calculating Your Fuel Tax Credit

The Fuel Tax Credit rate is determined by the Australian Taxation Office (ATO) and is subject to change. You'll need to know the applicable rate for the period in which you acquired the fuel. The ATO website provides the most up-to-date rates. Your claim is calculated by multiplying the litres of eligible fuel used by the applicable credit rate.

Example: If you used 1,000 litres of diesel in eligible off-road activities and the applicable credit rate is 45 cents per litre, your Fuel Tax Credit would be $450.

Record Keeping: Essential for Accurate Claims

Meticulous record keeping is paramount for successful Fuel Tax Credit claims. You should maintain records of:

• Fuel purchases (invoices, receipts).
• The type and quantity of fuel used.
• The activities in which the fuel was used.
• The dates the fuel was acquired and used.

These records must be retained for at least five years. Using digital record-keeping systems can significantly streamline this process.

Lodging Your Fuel Tax Credit Claim

Fuel Tax Credits are typically claimed as part of your Business Activity Statement (BAS). Ensure you complete the relevant sections accurately and submit your BAS by the due date. You can lodge your BAS online through the ATO's Business Portal, through a registered tax agent, or by mail.

Maximising Your Fuel Tax Credit Claim

Here are some tips to optimise your Fuel Tax Credit claims:

• Understand the Rules: Familiarise yourself with the ATO's guidelines and rulings on Fuel Tax Credits.
• Maintain Accurate Records: Implement a robust record-keeping system.
• Claim Promptly: Lodge your BAS on time to avoid missing out on credits.
• Seek Professional Advice: Consult with a registered tax agent for personalised advice.
• Monitor Fuel Prices: Keep an eye on fuel prices to optimise your fuelling strategy and budget effectively.

Staying Informed About Fuel Prices with FuelRadar

Keeping track of fuel prices can be time-consuming, but it's crucial for making informed decisions about fuelling and budgeting. That's where FuelRadar comes in. FuelRadar provides real-time fuel prices across Australia, allowing you to quickly identify the cheapest petrol stations near you. Whether you're looking for the best price on diesel in Adelaide (currently averaging 177.05 cpl based on 53 stations) or the most affordable Unleaded 91 in Sydney (167.27 cpl based on 207 stations), FuelRadar can help you save money. FuelRadar is available on both iOS and Android devices, ensuring you have access to the latest fuel price information wherever you are. Check out the FuelRadar map at https://fuelradar.com.au/map to see current prices in your area.

Other Tools Available to Motorists

While FuelRadar is a fantastic resource, many motorists also find value in using different apps and online tools that provide information about fuel prices, route optimisation, and vehicle maintenance. These tools can assist in making informed decisions about fuelling, planning efficient routes, and keeping vehicles in optimal condition, all contributing to reduced fuel consumption and overall cost savings.

Conclusion

Fuel Tax Credits are a valuable benefit for eligible Australian businesses. By understanding the rules, maintaining accurate records, and monitoring fuel prices, you can maximise your claims and reduce your operating costs. Don't leave money on the table – take the time to understand the Fuel Tax Credit system and claim what you're entitled to. To start saving on fuel today, download the FuelRadar app at https://fuelradar.com.au/download-the-fuelradar-app and start fuelling smarter.