Fuel tax credit rates changed again on 3 August 2026 following routine CPI indexation. While a normal indexation adjustment would not usually attract much attention, this latest change follows several earlier rate movements during 2026, increasing the likelihood of mistakes when preparing BASs.
Businesses claiming fuel tax credits have had to navigate a series of rate changes during 2026:
2 February 2026 – routine CPI indexation;
1 April 2026 – temporary fuel excise relief and a temporary reduction of the heavy vehicle road user charge to zero;
1 July 2026 – rates changed again when the temporary relief ended; and
3 August 2026 – further CPI indexation.
The practical result is that businesses may have fuel purchases spread across multiple rate periods within a relatively short timeframe.
The ATO has emphasised that fuel tax credit rates are generally determined by when the fuel was acquired, not when it was used. Clients may assume the current rate can simply be applied to all fuel purchased during a BAS period. However, where fuel was acquired across different rate periods, claims may need to be split and calculated using the rate that applied when each purchase was made. This is likely to be particularly relevant for businesses that:
make regular fuel purchases;
Fuel tax credits are relevant to a broad range of businesses, including:
transport operators;
The applicable rate may also depend on factors such as the type of fuel and whether it is used in heavy vehicles that travel on public roads, or in other eligible business activities.
Businesses that claim less than $10,000 in fuel tax credits each year may be able to use a simplified method. Where a fuel tax credit rate changes during a BAS period, they can generally use the rate that applies at the end of that BAS period instead of splitting fuel purchases between different rates. This can significantly reduce the record-keeping and calculation burden for smaller claimants.
Accurate records help ensure claims are calculated correctly and support the position taken if questions arise later. Useful information includes:
purchase dates;
Accurate records help ensure claims are calculated correctly and support the position taken if questions arise later.
The most practical message for clients is that fuel tax credits are not a “set and forget” BAS item. After four separate rate changes during 2026, it’s increasingly important to check that the correct rate is being applied to each claim. The ATO’s fuel tax credit calculator can help by automatically applying rates according to the date the fuel was acquired.
For many clients, a quick review before lodging the next BAS may be enough to avoid under-claiming or claiming more than they are entitled to.