How to Register for Fuel Tax Credit in Australia

The Complete Guide for Startup Founders

If your business uses fuel in vehicles, machinery, or equipment, there's a good chance you're eligible to claim Fuel Tax Credits — a refund from the government that puts real money back into your pocket. And yet, most startups either don’t know about it, or never get around to registering properly. That’s thousands of dollars lost, year after year. If you're spending on fuel and not claiming, you're literally burning cash.

Let’s walk through how to register for fuel tax credits in Australia, step-by-step — and make sure your business gets what it’s owed. (Also known as the GST fuel rebate in Australia for many founders.)

What Is the Fuel Tax Credit?

Fuel Tax Credits (FTC) let Australian businesses claim back part or all of the fuel tax (excise or customs duty) included in the price of fuel.

They apply when fuel is used in:

• Heavy vehicles (like trucks or buses)

• Machinery and equipment (like generators or excavators)

• Certain off-road uses (like agriculture, construction, or mining)

The credits reduce your operating costs — and are paid back directly to your business through your BAS (Business Activity Statement). Important: The rate of the credit depends on the type of fuel, how you use it, and whether your activity qualifies under ATO guidelines.

Why It Matters for Founders

This is a cash flow booster hiding in plain sight. Here's why registering matters:

1. Get Money Back You’re Already SpendingIf you use eligible fuel and don’t register, you’re literally paying taxes you don’t need to. Founders often leave thousands unclaimed.

   
   

2. Reduce Operating CostsFuel can be one of your biggest line items. Claiming credits means lower costs and better margins.

   
   

3. It's Legitimate, Government-Approved SupportThis isn’t a “hack” or loophole. It's an established ATO scheme designed to support Australian businesses using fuel in commercial operations.

   
   

4. You're Likely Already EligibleMany startups qualify and don’t realise it. If you're using fuel in vehicles over 4.5 tonnes, off-road machinery, or even powering equipment — you're probably covered. This is fuel tax credit for businesses and startups that meet ATO criteria.

   
   

Fuel Tax Credit Eligibility (Quick Checks)

Use these fast checks before you register (then confirm in the ATO tool):

• GST-registered? You must be registered for GST to claim FTC.

  
  

• Fuel type? Diesel, petrol, biodiesel, etc. (check which fuels qualify).

  
  

• Use case:

  • Off-road machinery/equipment (e.g., fuel tax rebate for machinery like excavators, compressors, generators, pumps) → often eligible.

  • Heavy vehicles > 4.5t GVM on public roads → generally eligible at reduced rates due to the road user charge.

  • On private property/off-road (construction sites, farms, mines) → often eligible.

  • Light vehicles on public roads → generally not eligible.

    
    

• Mixed use? You may need to apportion litres between on-road/off-road or eligible/ineligible activities.

  
  

• Records? Can you evidence litres used, where/when/how?

What You’ll Need Before You Register

Before you apply, gather the following:

• ✓ Your ABN and GST registration details

• ✓ Your ATO online services access (via myGovID or Business Portal)

• ✓ Records of fuel use and purchase (receipts, supplier details, litres purchased)

• ✓ Description of how fuel is used (e.g. vehicle type, machinery, off-road use)

• ✓ Fuel types used (diesel, petrol, biodiesel, etc.)

• ✓ Eligibility criteria checked via the ATO website

Having this information ready will make your registration smoother — and help you claim correctly the first time.

How to Register for Fuel Tax Credit: Step-by-Step

Step 1: Check Your Eligibility

Use the ATO Fuel Tax Credit Eligibility Tool to check if your business qualifies. This tool walks you through:

• Types of fuel

• Types of vehicles or equipment

• Whether usage is on-road, off-road, or mixed

Mentor Tip: Don’t assume you’re not eligible just because you’re not in transport or mining. Many service businesses qualify if they use fuel to power generators, pumps, or commercial vehicles.

Step 2: Register for Fuel Tax Credits with the ATO (Online/Agent)

This is the core ATO fuel tax credit registration step:

You can register:

• Online via ATO’s Online services for business (Business Portal), or

• Through your registered tax or BAS agent

You’ll need to:

• Log in to your ATO online account

• Go to Registrations → Fuel Tax Credit

• Select the date you became eligible (can be retrospective up to 4 years)

• Submit the form

Mentor Tip: If you're already registered for GST and lodging BAS, adding FTC registration takes minutes.

Step 3: Start Recording Fuel Usage Properly

You need to keep clear records of:

• How much fuel you purchased (litres, receipts)

• Where it was used (vehicle, machinery, job site)

• What type of fuel was used

• Dates of use or purchase

Example: If you operate an excavator on a construction site, record the litres used and hours operated each day.

Record-keeping & Evidence (What Good Looks Like)To stay audit-ready and claim the right amount, capture:

• Invoices showing supplier, date, and litres

• Odometer readings for vehicles / hour-meter readings for plant

• Transfer logs (bowser to equipment), job cards, fuel storage data

• Apportionment worksheets for mixed on-road/off-road use

• A reconciliation of litres purchased vs litres claimed

• Retain records for 5 years

Step 4: Claiming Fuel Tax Credit on Your BAS

Once registered, you can start claiming credits through your Business Activity Statement (BAS).

• Input total eligible litres for the period

• Use the correct rate based on ATO’s FTC rates (updated regularly)

• Calculate the refund and include it in the Fuel Tax Credit section of your BAS

Mentor Tip: Use the ATO's FTC calculator each quarter to get the correct rates — they change with fuel excise adjustments. If you search for “ATO business activity statement fuel”, you’ll see where this appears in the BAS workflow in Online services.

Rates, Road User Charge & Apportionment

(Read This Before You Claim)

• Rates change over time with fuel excise adjustments — always use the ATO FTC rates for your period (or the ATO calculator).

• Heavy vehicles on public roads: your FTC is reduced by the Road User Charge, so expect a lower cents-per-litre rate than off-road uses.

• Mixed use (e.g., a truck used on public roads and off-road on a site): keep apportionment evidence (logs, hours, distances) and apply rates separately.

• Off-road use (e.g., excavators, compressors, pumps, generators): typically higher rates apply (no road user charge deduction).

What It’s Worth and How Long It Takes

Refund Amount:As of July 2025, rates range from 18.8 to 49.6 cents per litre depending on fuel type and use;Example: A business using 10,000 litres off-road could reclaim $3,000–$4,000+ annually;

Setup Time:

• Registration: 15–30 minutes online

• Record-keeping: Light admin if done regularly

• BAS integration: 5–10 minutes once you’re set up

Money-Saving Tip: You can claim retrospectively for up to 4 years if you have the records. That could mean an immediate refund of thousands.

Retrospective Claims (Up to 4 Years)

Missed claims? If you were eligible and kept records:

• Recreate your litres/use evidence for the prior periods

• Use the ATO FTC calculator for each period’s rates

• Amend prior BAS or include an adjustment in the current BAS (as appropriate)

• Keep a clear audit trail of calculations and evidence

Common Eligible Use Cases by Industry

• Construction: excavators, telehandlers, site generators, compressors (off-road)

• Agriculture: tractors, harvesters, irrigation pumps, on-farm utes (off-road)

• Events/Services: portable generators, pumps, refrigeration units

• Transport: heavy vehicles >4.5t (on-road with road user charge reduction), yard operations (off-road)

  
  

Common exclusions: light vehicles on public roads generally not eligible.

Common Mistakes Founders Make

Mistake 1: Assuming They're Not Eligible

Just because you’re not a trucking company doesn’t mean you can’t claim. Fuel used in generators, utes, tractors, or off-road jobs often qualifies.

Mistake 2: Not Registering on Time

You can’t claim without being registered. Missing this step means you leave money on the table every quarter.

Mistake 3: Not Keeping Records

ATO requires evidence. If you don’t track litres used or have receipts, you risk missing out or getting penalised.

Mistake 4: Using Old Claim Rates

FTC rates change often. If you use outdated rates in your BAS, you could under-claim or trigger an audit.

Mistake 5: Forgetting to Claim Retrospectively

If you’ve been eligible but didn’t know it — claim back up to 4 years if your records are solid.

Here’s the thing: this isn’t just about compliance — it’s about cash. If you wouldn’t throw $5,000 out the window, don’t ignore this credit.

What to Do Right Now

✅ Download the from our digital library of business resources, guides and checklists from ProDesk.com — it shows exactly what to track, where to register, and how to start claiming.

✅ Not sure where to begin? Book a session with Noize — we’ll help connect you with a tax specialist that fits with your business and prevents you getting buried in admin [Noize.com.au]

✅ Want the full picture? Grab the Startup Deck — our founder toolkit includes financial systems, tax optimisation, PLUS mentoring in multiple areas of business [theStartUpDeck.com]

The Bottom Line

Fuel tax credits aren’t a bonus — they’re money your business has already earned. Registering today means getting back what’s yours, improving margins, and running leaner. And in a startup, cash is survival. Don’t let this one slide.

FAQ: Fuel Tax Credit (Australia)

What is a fuel tax credit in Australia?

Fuel tax credits are refunds from the ATO for fuel tax (excise or customs duty) you’ve paid on eligible business fuel use — like for heavy vehicles, generators, or machinery.

Who is eligible to claim fuel tax credits?

Australian businesses registered for GST that use fuel in eligible vehicles or equipment (e.g. trucks over 4.5 tonnes, excavators, generators, off-road machinery) can usually claim FTC. Use the ATO tool to confirm fuel tax credit eligibility.

How do I register for fuel tax credits with the ATO?

You can register through the ATO Business Portal (Online services for business) or via your tax/BAS agent. If you’re already registered for GST and BAS, it’s a quick add-on.

How much can I claim on fuel tax credits?

As of 2025, rates range from 18.8 to 49.6 cents per litre, depending on how the fuel is used. Use the ATO calculator to get the current rate and factor in the road user charge for heavy vehicles on public roads.

Can I claim fuel tax credits for past years?

Yes — you can claim up to 4 years retrospectively as long as you have proper fuel usage and purchase records.

Can I claim for machinery only (not trucks)?

Often yes. Fuel tax rebate for machinery (e.g., excavators, generators, pumps) used off-road is commonly eligible when records support it.

How do I claim on my BAS?

Enter eligible litres/amount in the Fuel Tax Credit section of your BAS. If you search for “ATO business activity statement fuel”, you’ll see where this sits in the BAS workflow online.