Plain-English definitions of the terms used across fuel tax credits and emissions reporting in Australia. Rates and rules change, so always confirm specifics against current ATO or regulator guidance.
Fuel tax credit terms
Apportionment. Working out what portion of your fuel was used on public roads, off public roads, or powering auxiliary equipment, so the right rate applies to each. See common FTC calculation methods.
Auxiliary equipment. Equipment powered by a vehicle's engine rather than used to move it, such as a crane, pump, mixer drum or compactor. Fuel used for it is generally claimed at the full rate. See the PTO and auxiliary equipment guide.
BAS (Business Activity Statement). The form businesses use to report GST and other obligations to the ATO, and where you claim fuel tax credits, usually monthly or quarterly.
Class ruling. An ATO ruling that applies to a defined class of entities using a defined arrangement, binding on the ATO for those who meet its conditions. See explanation of ATO rulings.
Constructive method. An apportionment method that builds the claim up from identified eligible fuel use, activity by activity.
Deductive method. An apportionment method that starts with total fuel and subtracts the non-claimable portion.
Eligible litres. The quantity of fuel that qualifies for a fuel tax credit, after apportionment and any exclusions. Your credit is eligible litres multiplied by the applicable rate.
Estimated use method. An apportionment method that applies a documented, fair and reasonable percentage derived from a representative sample.
Fuel consumption rate. How much fuel a vehicle or piece of equipment uses, expressed as litres per 100 km (L/100km) or litres per hour (L/hr). See the fuel consumption rates reference guide.
Fuel excise. The tax included in the price of fuel. Fuel tax credits refund the excise for fuel used in eligible business activities.
Fuel tax credits (FTC). A credit for the fuel excise included in the price of taxable fuel used in eligible business activities, claimed through your BAS. See the overview of fuel tax credits.
Heavy vehicle. For fuel tax credits, a vehicle with a gross vehicle mass (GVM) greater than 4.5 tonnes. Fuel used by heavy vehicles travelling on public roads is reduced by the road user charge.
Label 7D. The label on the BAS where you report your fuel tax credit amount.
Light vehicle. A vehicle of 4.5 tonnes GVM or less. Fuel used in light vehicles travelling on public roads is not eligible for fuel tax credits.
Off public road. Activity away from public roads, for example on private roads, work sites, mines or farms. Fuel used off public roads is generally claimed at the full rate. See on-road vs off-road fuel.
On public road. Travel on public roads. For heavy vehicles this fuel is reduced by the road user charge; for light vehicles it is not eligible.
PCG 2016/8. An ATO practical compliance guideline setting out fair and reasonable methods for apportioning fuel for fuel tax credit claims.
PCG 2016/11. An ATO practical compliance guideline setting out accepted safe-harbour percentages for fuel used in a heavy vehicle's auxiliary equipment.
Power take-off (PTO). A mechanism that uses the vehicle's engine to drive auxiliary equipment. Fuel used by a PTO can be eligible at the full rate.
Road user charge (RUC). A charge on fuel used by heavy vehicles travelling on public roads. It reduces the fuel tax credit for that fuel, which is why the on-road vs off-road split matters. See road user charging.
Safe harbour. An ATO-accepted percentage or method you can apply without needing to measure precisely, provided you meet the conditions.
Telematics / GPS apportionment. Using GPS and telematics data to measure where and how vehicles operated, so fuel can be apportioned accurately rather than estimated. See how Nuonic calculates FTC using GPS data.
Time limit (four years). You generally have four years to claim a fuel tax credit, from the due date of the BAS in which you could first have claimed it.
Record retention (five years). You generally need to keep the records supporting a claim for five years, from when the record was prepared or obtained, or from when the transaction was completed, whichever is later. See record keeping best practices.
Emissions reporting terms
NGA factors (National Greenhouse Accounts factors). Australian Government published emission factors used to estimate greenhouse gas emissions from fuel and energy use.
NGER (National Greenhouse and Energy Reporting). Australia's legislated scheme for reporting company greenhouse gas emissions and energy use, with mandatory annual reporting for corporations above the thresholds.
AASB S2. Australia's climate-related financial disclosure standard, requiring eligible entities to disclose climate risks and greenhouse gas emissions as part of financial reporting, phased in by entity size. See understanding your emissions standard.
Scope 1 emissions. Direct emissions from sources you own or control, including fuel burned in your vehicles and equipment.
Scope 2 emissions. Indirect emissions from the electricity, heating or cooling you purchase.
Scope 3 emissions. Other indirect emissions across your value chain, for example from suppliers and contractors.
Emission factor. A published value that converts an activity, such as litres of diesel burned, into a quantity of greenhouse gas emissions.
This page is general information, not tax or legal advice. Confirm definitions and requirements against current ATO or regulator guidance for your circumstances.