Fuel Tax Credits (FTCs) are a rebate of fuel excise included in the price of fuel used for eligible business activities. FTC is claimed via line item 7D on a Business Acitivty Statement (BAS) firm, which most businesses submit monthly or quarterly.
For many transport, construction, civil, mining, and agriculture businesses, FTCs are a significant part of their tax and compliance work. Calculating your FTC accurately and keeping the right records ensures you're not missing out on your full cash entitlements, while minimising risks and costs associated with audits which can occur at any time.
What FTC covers
In broad terms, FTC can apply to fuel used in:
- Heavy vehicles
- Plant and equipment
- Machinery and auxiliary equipment
- Vehicles or activities on private roads and off public roads
Eligibility depends on fuel type, how the fuel is used, and the applicable ATO rules for the period.
How FTC is typically claimed
Most businesses claim FTC through their BAS. The amount claimed depends on:
- Litres of eligible fuel
- Business use vs non-claimable use
- Activity type (for example, on-road vs off-road)
- The FTC rate that applies for the relevant period
Rates and eligibility rules can change, so it is important to check current ATO guidance when preparing each BAS.
Time limits and evidence
You generally need to claim within 4 years from the due date of the BAS period in which you acquired the fuel. You also need enough records to show:
- Fuel was acquired for business use
- The quantity of fuel used in eligible activities
- How your calculation method was applied
Where Nuonic fits
Nuonic helps turn raw fuel and GPS data into clear usage allocations and calculation-ready reporting. This improves consistency and traceability, especially where on-road/off-road apportionment is required.
Important
This article is general information, not tax advice. For legal or tax decisions, confirm requirements against current ATO publications or speak with a qualified advisor.