For the latest rates for non-combustible activities, refer to Fuel tax credit rates. You need to use the rate that applied when you acquired the fuel.
Non-combustible uses include:
- fuel you use directly in a non-fuel manner – for example, as a solvent
- fuel you use as an input or ingredient in the manufacture of products – for example, paint manufacture.
Fuel tax credit rates for these non-combustible activities were not reduced by the carbon charge.
If your activity is not listed here, or you use fuel in an activity where the fuel is combusted – that is, in an internal combustion engine or burnt – you may be eligible under another activity with a different rate.
You can claim fuel tax credits for taxable fuel you use for a non-combustible use in your business – for example, diesel, heating oil, kerosene, fuel oil, toluene, mineral turpentine, white spirit, duty paid LPG, LNG or CNG.
Non-combustible use means using fuel in a way that does not ignite or burn the fuel – for example:
- fuel you use directly in a non-fuel manner – that is, it is not combusted
- fuel you use as an input or ingredient in the manufacture of products that are not intended for combustion.
Fuel tax credits for non-transport gaseous fuel used in a non-combustible activity – such as LPG used as a propellant in the manufacture of aerosols – depend on when the fuel was acquired. If you acquired the fuel:
- in the period 1 July 2012 to 30 June 2013 – you can claim fuel tax credits at a rate equal to the carbon charge amount for LPG or LNG
- from 1 July 2013 – you cannot claim fuel tax credits for the fuel as no excise or customs duty has been paid on the fuel from this date. However, if the non-combustible activity is a specified agriculture, fishing and forestry activity, you are entitled to fuel tax credits until 30 June 2014 at a rate equal to the carbon charge amount.
If you are not sure if the fuel you use to manufacture your products is eligible for fuel tax credits, you can apply for a private ruling.
Fuel you use directly in a non-fuel manner
This category includes fuel that you apply directly onto a surface and not to provide power – for example:
- fuel you use to clean machinery parts or drums
- diesel you spray directly onto a road as a sealant
- fuel you use as a mould release.
Fuel you use as an input or ingredient
You can use fuel in this category as an input or ingredient in the manufacture of another product, as long as that product cannot be used as a fuel in an internal combustion engine, or as a burner fuel – examples include:
- printing inks
- paint
- plastics
- certain solvents and cleaning agents
- adhesives
- rubber products
- pharmaceutical products.
We may issue a determination that a blend of a fuel with a non-fuel product does not constitute a fuel. If your blend is subject to such a determination, you may be entitled to fuel tax credits for the fuel component you use in making that blend.
Example: Non-fuel uses
Ted’s Paint Supplies purchases toluene (a fuel) to use in manufacturing paint. The price of the fuel includes excise duty of 38.143 cents per litre.
Ted blends the toluene with other non-fuel products to make the paint that he then sells to his customers.
He is entitled to fuel tax credits of 38.143 cents per litre on the toluene because the final product (the paint) cannot be used as a fuel in an internal combustion engine.
End of example