What are bunker fuels
Bunker fuel is generally described as either:
- oil carried as fuel on oil-burning ships
- ships' fuel not listed on the cargo manifest.
Bunker fuel includes all types of petroleum, such as fuel oil or diesel. To be considered as bunker fuel, the fuel must be used to power the ship and auxiliary equipment.
Your obligations for paying customs or excise duty or GST for bunker fuels depends on your circumstances, including:
- ship size
- type of voyages undertaken
- residency (for tax purposes) status of the shipping operator
- agency arrangements on behalf of non-resident shipping operators.
These circumstances also impact your eligibility to claim fuel tax credits and refunds of duty.
For more information on your customs obligations, visit the Australian Border ForceExternal Link website.
Changes from 1 January 2025
From 1 January 2025, eligible ships of 400 gross tonnes or more can purchase bunker fuel free of duty from a licensed premise for domestic voyages. For more information, see Bunkers free of duty.