A Tradie's Guide to Managing and Reclaiming Fuel Tax Credits
19 October 2026 · 5 min read · By Heaney Accounting
What are Fuel Tax Credits?
Fuel tax credits allow your trade business to claim back the tax paid on fuel used for business activities. For many electricians, plumbers, and builders operating heavy machinery or large commercial vehicles, this can result in significant annual savings.
Eligibility for Your Trade Business
Not all fuel qualifies for a credit. You generally cannot claim for fuel used in private light vehicles. However, you can claim for:
- Fuel used in heavy vehicles (over 4.5 tonnes GVM).
- Fuel used in plant and equipment like excavators or generators.
- Fuel used for non-transport business activities, such as powering site equipment.
Important Note: You must keep accurate records of fuel purchases and vehicle usage, as the ATO may audit these claims at any time.
- Keep receipts showing the date, fuel type, and volume purchased.
- Use a logbook to separate business and private usage for dual-purpose vehicles.
- Calculate your claim based on the specific ATO rate for your fuel type and usage period.
- Include your total claim amount in your Business Activity Statement (BAS).
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