Where your fuel is used, on public roads, off public roads, or powering auxiliary equipment, decides how much fuel tax credit you can claim. Fuel used off public roads and to run auxiliary equipment attracts the full rate, while fuel used by heavy vehicles travelling on public roads is reduced by the road user charge, so it is worth less. Getting this split right is often the single biggest driver of a claim's value.
Why the on-road vs off-road split matters
Fuel tax credit rates are not the same for every litre. The road user charge reduces the credit for heavy vehicles travelling on public roads. Fuel used away from public roads, or to power equipment rather than move the vehicle, is not reduced in the same way, so it is generally claimed at the full rate. The more accurately you can identify genuine off-road and auxiliary use, the larger and more defensible your claim.
What counts as off public road?
Off-public-road use generally includes:
- Travel on private roads and access tracks
- Activity on work sites, depots, quarries, mines and farms
- Fuel used to power auxiliary equipment, for example a crane, pump, mixer drum or compactor
- Idling off public roads
What does not qualify at the full rate:
- Heavy vehicles travelling on public roads, which are reduced by the road user charge
- Light vehicles of 4.5 tonnes or less travelling on public roads, which are not eligible at all
Because a public road is not always obvious, for example private haul roads, closed lanes and work sites on public roads, the classification needs to be worked out carefully and evidenced. See FTC for work sites on public roads.
How the split is worked out
You need a fair and reasonable way to apportion fuel between on-road, off-road and auxiliary use. That can be done with operational records, sampling, or GPS and telematics data that shows where each vehicle actually operated. See common FTC calculation methods for the approaches the ATO accepts.
How Nuonic helps
Nuonic classifies every GPS position from your existing telematics as on or off public road, measures auxiliary use, and produces an apportionment that traces back to source for audit. That means you can capture the higher-rate off-road and auxiliary use you are entitled to without estimating. Get started, or see how to review your on and off road usage in Nuonic.
ATO references
Related
- Overview of fuel tax credits in Australia
- PTO and auxiliary equipment fuel consumption guide
- How to review on and off road usage
This article is general information, not tax advice. Confirm requirements against current ATO publications or with a qualified adviser.