Fuel Tax Credit Rates Changed. Is Your BAS Using the Wrong Number?
If your business claims fuel tax credits, a quiet change landed on 1 April 2026. The rate you use to claim is now different.
This is not a small detail. Get the date wrong, and your BAS claim is wrong too.
What Actually Changed
The government cut fuel excise by 60.9 percent for three months. This runs from 1 April to 30 June 2026.
Fuel tax credits are based on excise. When excise drops, the credit drops too. The rate fell to around 20.6 cents per litre for most business fuel use.
The heavy vehicle road user charge also dropped to zero for the same three months. This changes how credits are worked out for trucks on public roads.
Why This Catches Businesses Out
The change is not simple. It depends on exactly when you bought the fuel, not when you claim it.
Fuel bought before 1 April uses the old, higher rate. Fuel bought on or after 1 April uses the new, lower rate.
If your business buys fuel regularly, you may need two different rates in the same BAS period. One slip on the date, and the whole claim is off.
Who This Affects Most
Trucking and transport businesses feel this first. Fuel is often their biggest single cost.
Construction and earthmoving businesses are affected too, especially with bulk fuel stored on site. The delivery date and the use date can be weeks apart.
Farms, mining, and any business running generators or machinery off-road also need to check their rate carefully for this period.
Light vehicles under 4.5 tons on public roads cannot claim fuel tax credits at all. For these businesses, the only effect is a lower price at the pump.
A Simple Example
Diesel bought on 15 March 2026 still uses the old rate. Diesel bought on 15 April 2026 uses the new, lower rate.
Two deliveries, three weeks apart, on two different rates. This is exactly the kind of detail an easy spreadsheet error miss.
What Happens After 30 June
This change is temporary. Rates are expected to rise again from 1 July 2026, back toward the normal excise level.
This means your business may need to track three different rate periods this financial year. The rate before 1 April, the rate from 1 April to 30 June, and the rate from 1 July onward.
What to Do Now
Check every fuel purchase by date, not just by total spend for the quarter. The acquisition date decides the rate.
Separate on-road heavy vehicle fuel from off-road and auxiliary use. These follow different rate rules during this period.
Use the ATO’s fuel tax credit calculator before lodging, rather than applying last quarter’s rate from memory.
Keep clear invoices showing purchase dates. This is the detail an ATO review checks first if your claim looks unusual.
Review your next BAS before lodging, since one period may genuinely need two different rates applied correctly.
Frequently Asked Questions
Do I need to use the new rate for fuel I am claiming now, even if I bought it earlier? No. The rate is based on when you bought the fuel, not when you lodge your claim. Use the rate that applied on the purchase date.
Does this affect light vehicles on public roads? No. Light vehicles under 4.5 tons on public roads are not eligible for fuel tax credits at all. They only see the effect through a lower bowser price.
Can I fix a past mistake? Yes. You generally have four years to amend a BAS if you find an error in a past fuel tax credit claim.
Get Your BAS Checked Talk to Edulink
A small rate error on fuel tax credits can quietly cost your business money, in either direction.
Edulink Payroll Services manages bookkeeping and BAS for small and medium businesses across greater Sydney and Campbelltown, with pricing from $750 per employee, per year.
Have more employees? Call us for a discounted rate.
📞 Call us today: 04 044 71 816
Edulink Payroll Services | Campbelltown & Greater Sydney | Call 04 044 71 816
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