HomeResourcesBlogHow to Improve Your Fuel Tax Credit Claim
6 mins to read

How to Improve Your Fuel Tax Credit Claim

By Verizon Connect Team October 4, 2022

Fuel tax credits in Australia provide businesses with a credit for the fuel tax - excise or customs duty - that’s included in the price of fuel used for machinery, plant, equipment, heavy vehicles and light vehicles travelling off public roads or on private roads” as the Australian Taxation Office stated. (1)

Fuel is essential for businesses that operate vehicles. Concretely, fuel costs represent a significant part of the total fleet costs. One study shows “that reducing by 10% fuel costs can help to achieve a 31% increase in profit for a business.” So fuel efficiency is the key that can help save costs and can help to get good results on the bottom line. (2)

The Australian government through the Australian Taxation Office (ATO)  provides tax credits to help Australian businesses meet their fuel cost saving goals through this program to help boost business activities.

Which Australian businesses are eligible to claim fuel tax credit?

Every year Australian businesses have access to their fuel tax credit claim. For this purpose, the Australian government provides businesses with a fuel tax credit which is included in the price of fuel used in activities such as: machinery, plant, equipment, heavy vehicles, light vehicles travelling off roads or on private roads. (3)

In detail, Australian businesses can claim fuel tax credits for 'any eligible fuel you acquired, manufactured or imported and used in your business'(4) and must be registered for value added tax (GST) at the time of acquiring the fuel tax credits for fuel at the time of making the claim.

Some fuels and activities are not eligible including fuel used in light vehicles of 4.5 tonnes gross vehicle mass (GVM) or less, travelling on public roads.(1)

Fleet Technology can help with your fuel tax credits claim

Accuracy is the key to claim your fuel tax credits and technology can help you achieve it. To claim your fuel tax credits on your Business activity statement -BAS- you need total control on which credits can be claimed and the nitty-gritties of records you need to keep.(5)

According to the Australian Taxation Office, the amount you claim depends on: 

  • when you acquired the fuel
  • what fuel you use
  • the activity you use it for.

“Having a detailed overview is essential to keep track of the fuel used to make the fuel tax credit claim and to avoid submitting irregular claims and even to avoid not claiming all the fuel used for your company”, as highlighted by the Australian Taxation Office. (6)

The Australian Taxation Office(ATO) highlights that businesses need to have an accurate overview and save records to: 

  • Apportion fuel used correctly between on and off public roads
  • Use fuel consumption rates that reflect the fuel used by your vehicle and activity
  • Only claim fuel used to power air conditioning in sleeper cabins when the heavy vehicle is used on a long-haul trip (not when the air conditioner is powered by battery)
  • Not claim for ineligible activities such as fuel used in light vehicles for travelling on public roads. (7)

Learn more about how fuel tax software can help you confidently claim the maximum allowable tax credit on fuel used in this eBook.

Benefits of using a GPS or telematics solution to help you with your fuel tax credit claim with accuracy and safety

It is really challenging, time consuming and difficult to keep manual records of on-road and off-road for every vehicle for a whole year with accuracy and proof to support the numbers. Every year, many Australian businesses are potentially losing money due to incorrect figures of their fuel consumption for their fuel tax claim.

According to the Australian Taxation Office (ATO) one of “the easiest and safest ways to get your claims right” (1) is to use a global positioning system (GPS) or telematics technology product.

Fleet technology providers like Verizon Connect enable businesses to easily and accurately claim the full amount of Fuel Tax Credits they are entitled to. Currently, Verizon Connect works with Nuonic to help provide our customers with:

  • Control fuel consumption: Automatically and accurately calculates your on-road and off-road fuel spend
  • Monitor time spent off-on road:  Helps you measure time spent off-road vs on-road
  • Save time for your fuel tax credit claim: Improves the accuracy of Fuel Tax Credit claims
  • Identify vehicle activity: Identifies private roads and uses GPS data to measure your time on private roads.
  • keep your records safe: Monthly calculations to back up your claims means you can make informed, accurate submissions.

See how our customers improved their Fuel Tax Credits claims since implementing our technology.

Civil Construction Business Saved $10,000 Since Using Verizon Connect

Fuel Tax Credits Pay For The System

Australian Road Services were claiming the minimum Fuel Tax Credits (FTC) of 15.8 cents per litre, like many companies. They didn’t know that they could claim more with their off-road fuel use or how much more that would be.

Australian Road Services learnt they could confidently claim more than the minimum FTC when they implemented Verizon Connect Reveal. They found that their trucks were regularly off the public road network, meaning they were missing out on an extra 25.8 cents for every litre of fuel they used off road. Now they accurately claim the maximum amount that they’re entitled to and it’s no extra effort or energy expended for a massive return on investment.

 “After Verizon Connect made us more aware of FTC, we found out how beneficial it was to us and now we actually pay for our system just off the Fuel Tax Credits. Over the year we will have at least $10,000 back in our pocket.” - Dave Watt, Manager

Learn more about Civil Construction case study here

Learn more about how our technology can help you and your business to claim your Fuel Tax Credits to lower fleet costs. Get a demo and see it in action.


Verizon Connect Team

The telematics industry is moving at a fast pace. With new developments, use cases and feature sets emerging every day, it can be challenging to make the right decision for your fleet business. Verizon Connect Staff is conceptualized to be a partner for your business and help you make smart choices based on useful content.


Tags: Cost Control, Revenue & ROI

Related blogs
5 potential solutions for fleet engine idling reduction Service industry boosted by advanced telematics How does the construction industry use GPS tracking?

Schedule a demo

Find out how our platform gives you the visibility you need to get more done.