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Navigating Fuel Tax Credits for Tradies

7 September 2026 · 5 min read · By Heaney Accounting

If you use heavy vehicles or machinery in your trade business, you may be eligible to claim fuel tax credits for the fuel used. This is often an overlooked opportunity to recoup significant business costs.

What Qualifies for a Claim

Generally, you can claim fuel tax credits for fuel used in heavy vehicles (over 4.5 tonnes) or for fuel used in off-road activities like powering generators or heavy plant machinery on a job site.

  • Operating excavators or earthmoving equipment on site
  • Running portable power generators for tools
  • Fuel used in heavy trucks for carting materials
  • Operation of stationary equipment on job sites
  1. Maintain clear records of fuel purchases including tax invoices
  2. Track the litres used for business vs personal or excluded purposes
  3. Calculate your claim using the current ATO rates for your specific activity
  4. Include your claim as a adjustment on your BAS

Pro Tip: Fuel tax credit rates change regularly based on government indexation. Always check the official ATO website or your bookkeeping software to ensure you are using the most current rate for the relevant period.

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