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Fuel Tax Credit

A Fuel Tax Credit is an ATO rebate that refunds part of the fuel tax paid by businesses using fuel for commercial vehicles, machinery and equipment. It reduces operating expenses and improves cash flow — which can positively support Working Capital Loans, Invoice Finance and Business Loans applications. Related glossary terms include Cash Flow, Business Use Percentage, Logbook. Relevant blogs: Cashflow Mistakes SMEs Make, Fast-Track Asset Finance.

Why Fuel Tax Credits Matter

Lower running costs mean stronger cash flow — which improves overall business health. This can indirectly strengthen applications through: Truckie Hub, Tradie Hub, Business Owners Finance Hub.

How Fuel Tax Credits Work

  • Claimable through BAS returns
  • Rates differ for vehicles, equipment and off-road machinery
  • Heavy vehicles receive a reduced credit rate
  • Off-road commercial use can receive higher rebates
  • Accurate records (fuel litres, km logs, activity diaries) are required

Official info: ato.gov.au

What is a Fuel Tax Credit?
A Fuel Tax Credit is an ATO rebate that refunds businesses for the fuel tax paid on commercial fuel use.
Who is eligible?
Businesses using fuel for vehicles, machinery or equipment in commercial operations may qualify.
How do I claim?
Fuel Tax Credits are claimed through your BAS based on eligible litres used.
Do heavy vehicles qualify?
Yes — heavy vehicles used for business may receive a reduced credit rate.
Does it affect loans?
Indirectly — improved cash flow can strengthen a business’s lending profile.