If your business relies on fuel, it’s important to stay up to date with changes to fuel tax credit rates. Recently, two changes came into effect:

• 1 July 2025 – rates for heavy vehicles travelling on public roads changed due to an increase in the road user charge.
• 4 August 2025 – rates changed again following an increase in the Consumer Price Index (CPI).

Because rates vary depending on the type of fuel, when it was acquired, and what activity it was used for, making accurate claims can feel a little tricky.

Making Your Claim Simple

If your business claims less than $10,000 in fuel tax credits each year, the ATO has made things easier. You can simply use the rate that applies at the end of your BAS period to calculate your claim.

For more accuracy (and to save time), you can also use the ATO’s fuel tax credit calculator. This tool helps work out your entitlement based on simplified fuel tax credit rates.

Tips When Completing Your BAS

To avoid missing out or making errors, keep these points in mind:

• Check your apportioning – make sure you’re correctly splitting fuel use across eligible and non-eligible activities so you claim the full amount.
• Lodge online – using ATO online services, a registered tax practitioner, or BAS agent can give you extra time to lodge and pay.
• Keep good records – hold on to receipts for fuel purchases and note how fuel is used in your business.

Fuel tax credits can provide a valuable boost to your cash flow, but only if you get them right. If you’re unsure, your accountant or BAS agent can guide you through the process and help ensure you’re maximising your claim.