Fuel tax credit (FTC) rates and the updated ATO calculator

If your business claims Fuel Tax Credits on its Business Activity Statement (BAS), the April–June 2026 period needs special attention. Between 1 April and 30 June 2026, the Government temporarily reduced fuel excise on petrol and diesel by a total of 60.9%. Because FTC rates are closely linked to the excise paid, those credits were also adjusted. To help businesses apply the correct rates, the ATO has updated its online FTC calculator so you can enter your fuel details and automatically use the right rate for each period.

For off-road business use – that is, fuel used for activities other than travelling on public roads, such as plant, equipment, generators or other machinery – the FTC rate for petrol and diesel in that three-month window is 20.6 cents per litre. This reflects the reduced excise and delivers a lower per-litre credit than under normal settings. For heavy vehicles with a gross vehicle mass (GVM) over 4.5 tonnes travelling on public roads, the rate also becomes 20.6 cents per litre for that period, slightly higher than the previous 20.2 cents per litre.

The reason is that the road user charge, which normally reduces the credit, was temporarily set to zero, lifting the effective FTC rate.

A crucial point is timing: FTC entitlement is based on the date the fuel was acquired, not when it was used or when you lodge the BAS. That means you may have to apply one set of rates for fuel bought before 1 April 2026 and another for fuel bought between 1 April and 30 June 2026. Good records of litres purchased, dates and usage type (off-road vs heavy vehicles on public roads) are essential if the ATO asks you to substantiate your claim. Many businesses also find it helpful to work with their tax or BAS agent to check calculations and ensure they are claiming neither too little nor too much.

Unsure which fuel tax credit rate applies to your BAS, or whether your records are sufficient if the ATO asks questions? Contact Count Gold Coast today on 1300 667 897 and speak with one of our advisers. We can walk through your fuel usage, check your FTC calculations and help you lodge with confidence.

For further reading: ATO Small Business: ATO fuel tax credit calculator and tools.

Back to Coolangatta