Navigating: The Scoop on Fuel Tax Credit Rates for Businesses


Fuel tax credit rates, a crucial aspect of business finances, undergo regular changes, making it imperative for businesses to stay informed and apply the correct rates.

Indexation Frequency: Twice a year, in February and August, fuel tax credit rates are indexed based on the Consumer Price Index (CPI). As of February 5, 2024, the CPI indexation factor stands at 1.018.

Impact on Heavy Vehicle Usage: Fuel tax credit rates for heavy vehicles on public roads may vary due to changes in the road user charge. Over the next three years, the heavy vehicle road user charge will witness a 6% annual increase. This translates to an escalation from 28.8 cents per litre in 2023–24 to 32.4 cents per litre in 2025–26 for petrol and diesel.

Gaseous Fuels Road User Charge: For gaseous fuels, the road user charge per kilogram will follow an upward trajectory from 38.5 cents per kilogram in 2023–24 to 43.2 cents per kilogram in 2025–26. Currently, this road user charge reduces fuel tax credits for gaseous fuels to nil.

Biodiesel Rate Alterations: In July 2023, rates for biodiesel (B100) underwent changes due to an annual increase in excise duty rates.

Temporary Fuel Excise Duty Reduction: A notable event occurred from March 30, 2022, to September 28, 2022, when fuel excise duty rates were temporarily reduced. This applied to excise and customs duty rates for various fuels, impacting fuel tax credit rates during that period.

Stay Informed, Stay Compliant: Given the dynamic nature of fuel tax credit rates, staying informed is paramount for businesses. Regularly checking for updates and understanding the nuances ensures accurate application of fuel tax credits. Navigating these changes strategically safeguards businesses against financial uncertainties.

Keep your business fuel-efficient and finance-savvy!


Source: Practical Compliance GuidelinPCG 2024/2, ATO website


  • Should you have any queries, please contact Tax Ideas Accountants & Advisers on
    +61 2 83181545
  • Alternatively, you can book an appointment in our live calendar.


Written by Ideas Group

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