July changes to fuel tax credit rates

Fuel tax credit rates for business

Fuel tax credit rates change regularly, so it's important to check and apply the correct rate.

They are indexed twice a year – in February and August – based on the upward movement of the consumer price index (CPI). The CPI indexation factor for rates from 1 February 2023 is 1.037.

Fuel tax credit rates may also change for fuel used in a heavy vehicle for travelling on a public road. This is due to changes in the road user charge.

The heavy vehicle road user charge will increase by 6% over 3 years from 28.8 cents per litre for petrol and diesel in 2023–24, to 30.5 cents per litre in 2024–25 and to 32.4 cents per litre in 2025–26.

The road user charge rate for gaseous fuels per kilogram rate will increase from 38.5 cents per kilogram in 2023-24, to 40.8 cents per kilogram in 2024–25, to 43.2 cents per kilogram in 2025–26. Currently, the road user charge reduces fuel tax credits for gaseous fuels to nil.

In July 2023, rates will change for biodiesel (B100) due to an annual increase in excise duty rates.

From 29 September 2022, the rates changed due to the end of the temporary reduction of fuel excise duty. The reduction, which was in place from 30 March to 28 September, applied to excise and excise equivalent customs duty rates for petrol, diesel and all other fuel and petroleum-based products (except aviation fuels). This affected the fuel tax credit rates during this period.

For current fuel tax rates, see From 1 July 2023 to 30 June 2024 (includes rates from 1 July 2023) or contact Flor-Hanly's accountants in North Mackay on 07 4963 4800.

Source: ATO