How to claim fuel tax credits
You claim fuel tax credits on your BAS in the same way as you claim GST credits.
For GST group representatives and other businesses with complex structures, the claiming arrangements vary. They are:
- GST groups – the representative member of the group claims fuel tax credits on behalf of the group.
- GST branches – each branch claims fuel tax credits separately from the parent entity.
- GST joint ventures – the operator claims fuel tax credits on behalf of the participants.
Find out about
- When to claim
- How to complete your claim
- How to submit your claim
- If you pay GST in instalments
- Fuel tax credits and contractual arrangements
- Income tax and fuel tax credits
If you are claiming fuel tax credits for domestic electricity generation and for eligible business activities, you must claim all of your fuel tax credits on your BAS.
If you pay GST in instalments, you can also claim fuel tax credits.
When to claim
You can claim fuel tax credits at the time you acquire, manufacture, or import the fuel into Australia.
If you account for GST on a cash basis, you should claim your fuel tax credits in the BAS period you pay for the fuel. If you account for GST on a non-cash basis, you should claim your fuel tax credits in the BAS period you receive your invoice for the fuel.
See Choosing an accounting method for more information.
How to complete your claim
On your BAS, you must record at fuel tax credit label 7D:
- your fuel tax credit entitlement for the tax period
- any adjustments attributed to the tax period that will increase your entitlement to fuel tax credits.
If you need to make an adjustment in the tax period that will decrease your entitlement to fuel tax credits, you must include this at fuel tax credit label 7C.
Only record the whole dollar amount – leave off any cents.
You can claim outstanding fuel tax credits using your current BAS, rather than revising the earlier BAS for the period in which the error occurred. There are time limits for claiming fuel tax credits.
Your fuel tax credits at label 7D will be offset against any fuel tax credit over claim (label 7C) for the current period, as well as any other outstanding tax obligations or some Australian Government debts you may have.
See Adjustments and errors and Fuel tax credits – how to complete your activity statement labels for more information.
How to submit your claim
You can claim fuel tax credits by lodging your BAS in one of three ways. You can:
- lodge online through the Business Portal
- submit a paper BAS
- claim through your registered tax agent or BAS agent.
Lodging online
If you are registered to deal with us online, you can lodge your BAS through the Business Portal. You can also use the portal to update business registration details and perform a range of other transactions online.
If you register to claim your fuel tax credits online, we will send you software with security tools to ensure the information you send via the internet remains secure and is authenticated by electronic signature. After you install this software on your computer, you can:
- access your personalised electronic BAS
- complete your claim as you would for a paper claim
- transmit the completed form to us.
See Business Portal to lodge your BAS.
Claiming using a paper business activity statement
Once you are registered for both GST and fuel tax credits, your next BAS will include the fuel tax credit labels. You must claim your fuel tax credits on your BAS in the same way you claim your GST credits.
Your BAS must be signed by a person authorised to act on behalf of the business.
Claiming via your registered tax agent or BAS agent
Your registered agent may lodge your claim online using Online services for agents or the practitioner lodgment service.
If you pay GST in instalments
If you pay your GST in instalments, you can claim fuel tax credits on a quarterly basis. After you register, you will receive quarterly business activity statements, regardless of whether you pay two or four GST instalments for the financial year, instead of receiving an instalment notice.
You can only claim fuel tax credits on your business activity statements – you cannot claim them on your annual GST return.
Your fuel tax credits are not included in your pre-printed GST instalment amount at label G21. You must report your actual fuel tax credits separately at label 7D on your business activity statements.
Instalment notices
Once you register for fuel tax credits, instead of receiving an instalment notice with no lodgment requirement, you will receive a quarterly BAS – you lodge this to claim your fuel tax credits.
You only need to lodge a BAS if you want to claim fuel tax credits for the period or if you have an adjustment to make for a fuel tax credit over-claim.
See Fuel tax credits and GST instalments for more information.
Fuel tax credits and contractual arrangements
Service and supply contracts may outline the following:
- which party to the contract will claim the fuel tax credits on eligible fuel use
- if any increase in fuel costs can be passed on and/or any reductions can be passed back following receipt of fuel tax credits; for example, via rise and fall provisions.
Only one entity is entitled to claim fuel tax credits. Including details in the contract of how fuel costs are to be managed may assist in determining which entity should claim the fuel tax credits.
Even though a contract may state that one party can claim fuel tax credits, you are only entitled to fuel tax credits if you have acquired and used the fuel in your business.
See also
- FTR 2007/1 Fuel tax: the meaning of 'acquire', 'manufacture' and 'import' in the expression 'taxable fuel that you acquire or manufacture in, or import into, Australia to the extent that you do so for use in carrying on your enterprise' in the Fuel Tax Act 2006
- If you are not sure if you are entitled to a fuel tax credit, you can apply for a private ruling.
Income tax and fuel tax credits
Fuel tax credits are part of your business income, so you must include them in your tax return, at ‘Assessable government industry payments’. They are not subject to GST.
Fuel tax credits are also deemed to be pay as you go (PAYG) instalment income. We will include these amounts in your PAYG instalment amount (at label T7) and the instalment rate (label T2) on your BAS.
You must also include your fuel tax credits as part of your PAYG instalment income at label T1 on your BAS.
See also: