Calculating fuel tax credits can be simplified whether your claim is less or more than $10,000 per year. The fuel tax credit can be accurately calculated when records are kept accurately as well.

All fuel tax credits per year can be simplified by following tax guidelines stated in this article.

Fuel Tax Credits less than $10,000 per year


Fuel tax credit claims that are less than $10,000 a year should use the rate applicable at the end of every BAS or business activity statement period.

There’s no need to use two varied rates or split the purchases of fuel during the BAS period. All you need to do is to add the total fuel litres applicable to the period. Working out your claim is by using the current rate on the last BAS day.


Calculating your litres


Calculating the quantity of purchased fuel in a tax period is by adding the overall purchased fuel cost in the BAS period. The next step is to divide the total fuel cost to the average litre price for the BAS period.

The formula will look this way:

Litres = overall total of purchased fuel divided by average fuel price


A Simple way of Keeping Records


Fuel tax credits amounting to less than $10,000 per year needs these simplified ways of keeping records to substantiate the claim:

  • Fuel invoice or supplier statement displaying only the dollar amount
  • Contractor statement where the services payable is deducted from the fuel amount used for performing the services
  • The Point-of-sale docket is where either illegible quantity or fuel quantity is not itemised
  • Financial institution statements such as either be personal or business debit/credit accounts showing only the dollar amount


 All Claims Simplified


The fuel apportionment can be simplified no matter the amount claimed in every year’s fuel tax credits. The following methods apply:

Using heavy vehicles off public roads

Backhoes or harvesters are examples of heavy vehicles that do not travel on public roads. Calculating for fuel tax credit claims on these types of heavy vehicles no longer needs off and on-road travel apportion.

Instead, the rate for “all other business uses” is the basis for the fuel claim for these kinds of vehicles. The same rule applies even when sometimes you drive the vehicle using a public road.


Using fuel to power your auxiliary equipment

Using fuel to power auxiliary equipment such as an elevated work platform or a concrete mixing barrel of a heavy vehicle are apportioned a certain percentage to show the amount of fuel used to make them work.

Fuel percentage for vehicles using auxiliary equipment:

  • Long haul vehicles with sleeper cabins – 5%
  • Concrete truck – 30%
  • Vehicles using special auxiliary equipment – 5%
  • Refrigerated vehicles – 10%
  • Waste Management collection – 15%


Factors that can affect fuel usage


Factors that can affect fuel usage include:

  • The type of terrain travelled by the heavy vehicle
  • Auxiliary equipment between use interval compared to the travelling distance
  • Weather conditions during travel time
  • Auxiliary equipment’s design and age
  • Maintenance and servicing of the heavy vehicle or auxiliary equipment
  • Cargo area’s capacity and weight
  • Driving influence


Calculating fuel tax credits per year can be inaccurate or understated when it is not done properly. Not being able to take advantage of fuel tax credits means the loss of extra dollars for your business. You can get full fuel tax credits from Fleet Complete.