Understanding Fuel Tax Credits for Trades
4 November 2026 · 5 min read · By Heaney Accounting
What are Fuel Tax Credits?
As a tradie, you are likely burning through a lot of diesel or petrol to get your gear and crew to the site. The ATO allows businesses to claim back the fuel tax included in the price of fuel used for business activities, which can be a significant cash injection for your business.
Which Vehicles Qualify?
- Heavy vehicles (over 4.5 tonnes GVM) regardless of the fuel type.
- Plant and equipment like excavators, generators, and earthmoving gear.
- Light vehicles that travel off public roads for business purposes.
- Auxiliary equipment like fridge trucks or power tools run by an engine.
- Separate your fuel receipts for business use versus private use.
- Check the current fuel tax credit rates on the ATO website as they change regularly.
- Keep an accurate logbook to prove how much fuel was used for business tasks.
- Include your claims in your BAS filing.
Pro Tip: Do not guess your fuel consumption. If you use a vehicle for both private and business travel, you must use a logbook to apportion the fuel costs accurately to avoid audit issues.
Try the related tools
Found this useful?
Get each new guide by email as it's published. No spam, no lock-in.