Fuel Tax Credits: What’s Changed and What Businesses Need to Know

Fuel tax credits remain an important entitlement for many businesses that rely on fuel for machinery, equipment, heavy vehicles and off‑road operations. Recent updates from the Australian Taxation Office (ATO) highlight both an increase in fuel tax credit rates and important rules around claiming time limits. Understanding these changes is essential to ensure businesses maximise their claims and avoid missing out on valuable credits.

Fuel Tax Credit Rates Have Increased
The ATO has announced that fuel tax credit rates increased on 2 February 2026, meaning businesses need to ensure they are using the correct rate when preparing their BAS.

To help businesses get it right, tools such as the ATO’s fuel tax credit calculator can assist with calculating the rates. The ATO also reminds businesses to ensure they are apportioning fuel use correctly, separating fuel used:

  • on public roads,
  • off public roads, or
  • to power auxiliary equipment.

Additionally, businesses must keep clear, detailed records of both their fuel purchases and how the fuel is used.

Time Limits on Fuel Tax Credit and GST Credit Claims
Alongside rate changes, fuel tax credits and GST credits will expire if not claimed within the 4‑year credit time limit. This period generally starts from the due date of the original BAS in which the credit could have first been claimed.

Importantly, once the 4‑year period has passed, the ATO has no discretion to amend an assessment to include additional credits. Even though the ATO may be able to amend overpaid or underpaid GST in some cases, additional credits cannot be included in an amendment assessment once expired.

For businesses approaching the expiry date for unclaimed credits, there are several options that should be considered:

  • Claim the credit in the next BAS that is still within the 4‑year time limit.
  • Lodge a revised BAS for the relevant tax period, these are generally processed faster than other amendment types.
  • Lodge a valid objection against their assessment for the period to which the GST credits are attributable before the 4‑year credit time limit expires.

Businesses identifying unclaimed fuel tax credits should act quickly to avoid losing entitlements permanently.

What This Means for Businesses
With both increasing rates and strict time limits in play, businesses should review their current fuel tax credit processes to ensure:

  • They are applying the most up‑to‑date rates.
  • They are accurately apportioning fuel use across all business activities.
  • Their record‑keeping is compliant and detailed.
  • No credits are nearing expiry without action.

Taking these steps ensures your claim is accurate and up to date with ATO requirements. If you need extra guidance, visit the ATO website or ask one of our accountants for assistance. Contact us on 1300 363 866.




General Advice Warning
The information provided in this article is for general information purposes only and is not intended to and does not constitute formal taxation, financial or accounting advice. McConachie Stedman does not give any guarantee, warranty or make any representation that the information is fit for a particular purpose. As such, you should not make any investment or other financial decision in reliance upon the information set out in this correspondence and should seek professional advice on the financial, legal and taxation implications before making any such decisions.