The Fuel Tax Credit rate for heavy vehicles travelling on public roads has decreased, due to an increase in the road user charge .
It is important that you ensure you are using the correct rates when calculating your fuel tax credits dependant on the date the fuel was purchased. Current fuel tax credit rates are as follows:
Rates for fuel acquired from 1 July 2025 to 3 August 2025
| Eligible fuel type | Used in heavy vehicles for travelling on public roads (see note 1) | All other business uses (including to power auxiliary equipment of a heavy vehicle) (see note 2) |
| Liquid fuels – for example, diesel or petrol Unit: cents per litre | 18.4 (see note 3) | 50.8 |
| Blended fuels: B5, B20, E10 Unit: cents per litre | 18.4 (see note 3) | 50.8 |
| Blended fuel: E85 Unit: cents per litre | 0 (see note 3) | 21.73 |
| Liquefied petroleum gas (LPG) (duty paid) Unit: cents per litre | 0 (see note 3) | 16.6 |
| Liquefied natural gas (LNG) or compressed natural gas (CNG) (duty paid) Unit: cents per kilogram | 0 (see note 4) | 34.8 |
| B100 Unit: cents per litre | 0 (see note 3) | 16.9 |
Note 1: From 1 November 2019, this rate includes fuel used to power passenger air-conditioning of buses and coaches.
Note 2: Claims for packaging or supplying fuel can use the ‘all other business uses’ rate for the appropriate eligible fuel type.
Note 3: Fuel tax credit rates change for liquid fuels used in a heavy vehicle for travelling on a public road due to changes in the road user charge, which increases by 6% each year over 3 years, from:
- 28.8 cents per litre in 2023–24, to
- 30.5 cents per litre in 2024–25, and to
- 32.4 cents per litre in 2025–26.
Fuel tax credits are reduced to nil where the road user charge exceeds the fuel tax credit rate.
Note 4: Fuel tax credit rates change for gaseous fuels due to changes in the road user charge, which increases by 6% each year over 3 years, from:
- 38.5 cents per kilogram in 2023–24, to
- 40.8 cents per kilogram in 2024–25, and to
- 43.2 cents per kilogram in 2025–26.
Currently, the road user charge reduces fuel tax credits for gaseous fuels to nil.
Australian Taxation Office. (25 June 2025). Fuel tax credit rates-From 1 July 2025 to 30 June 2026 . Retrieved from https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/fuel-schemes/fuel-tax-credits-business/rates-business/from-1-july-2025-to-30-june-2026
In text: (Australian Taxation Office, 2025)
Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
