What Are Fuel Tax Credits (FTC)

Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) paid at the pump to run:

Light vehicles
Heavy vehicles
Operating machinery
Plant and equipment

The criteria for claiming FTC is quite specific and excludes things like light vehicles travelling on public roads as well as mileage travelled for private use of fleet vehicles.

FTC is refunded to businesses monthly, quarterly or annually by the ATO via your Business Account Statements (BAS).

How to calculate your FTC?

The amount of FTC you can claim depends on when the fuel was purchased, what sort of fuel it was and how it was used i.e. whether it was on a public road or off-road such as at a depot, farm etc.

It’s also very common for some vehicles to use a tank of fuel on a combination of off-road and public road activities – so it needs to be documented and divided up between the different FTC rates.

Fuel tax credit rates also change regularly, but currently range from 4.2 cents to 42.7 cents* per litre for off-road.

Some fuels and activities are also not eligible for FTC – such as the fuel used on a public road for light vehicles (less than 4.5 tonnes gross vehicle mass (GVM)) or liquefied natural gas.

The higher rate of fuel tax credits (currently up to 42.7 cents per litre*) can be claimed from the Australian Tax Office (ATO) whenever your vehicles or equipment are idling, driving or operating ‘off’ a public road.

*Note: Rates are as at 1 February 2021 – 30 June 2021. FTC rates are reviewed every six months so may differ slightly from those above.

The ATO table below outlines the fuels eligible for each FTC rebate.

Eligible fuel type	Unit	Used in heavy vehicles for travelling on public roads	All other business uses (including to power auxiliary equipment of a heavy vehicle) (see note 1)
Liquid fuels, for example diesel or petrol	cents per litre	16.9	42.7
Blended fuels: B5, B20, E10	cents per litre	16.9	42.7
Liquefied petroleum gas (LPG) (duty paid)	cents per litre	0.0	13.9
Liquefied natural gas (LNG) or compressed natural gas (CNG) (duty paid)	cents per kilogram	0.0	29.3
Blended fuel: E85	cents per litre	0.0	18.305
B100	cents per litre	0.0	7.1

*Note: Rates are as at 1 February 2021 – 30 June 2021. FTC rates are reviewed every six months so may differ slightly from those above.

What is classed as ‘off-road’ areas for FTC?

Off-road areas are classified as any travel off a public road and can include any of the following:

Truck stop
Vehicle depot
Farm
Mining site
Quarry
Logging site
Construction site
Loading dock
Private road
Council refuge site

FTC rebate exemptions

The following items are exempt from being claimed under the FTC scheme:

Aviation fuels
Fuel used in light vehicles travelling on public roads
Fuel used in heavy vehicles that don’t meet the specified environmental criteria for fuel emissions
FTC that has already been claimed earlier in the supply chain
Fuel that was stolen, lost or disposed of
Fuel used for private purposes

Let technology unlock the maximum FTC rebates for your business!

Technology, such as EROAD’s Fuel Tax Credit Solution, now eliminates the guesswork and admin to help unlock the maximum FTC rebates for your business.

While claiming FTC is optional, accurately documenting how and where you use your fuel with EROAD’s FTC solution means you can recover the maximum rebate you’re entitled to.

EROAD’s FTC Solution

Accurately maps and records your fleet’s locational and fuel usage data (on and off-road)
Automates your FTC to make it easier and save significant admin time
Claim up to 2.5 the standard on-road FTC rebate rate for off-road usage
Use technology to recover under-claimed FTC retrospectively for up to FOUR previous years
Easily claim off-road FTC for light vehicles
Create geofences for work sites near or close to public roads or construction zones to claim the maximum FTC entitlement