If you’re claiming less than $10,000 worth of fuel tax credits in a year, you can use the basic method for heavy vehicles to claim for fuel used while off public roads, for example when idling, loading or unloading your heavy vehicle in warehouses, depots or carparks. This method makes it easier to account for, and claim for, off public road fuel use.
Because fuel tax credit claims for travelling off public roads have a higher fuel tax credit rate than the rate for travelling on public roads, you get more fuel tax credits back if you use the basic method for heavy vehicles.
You can use this method for diesel acquired on or after 1 October 2020. You can’t use any other method for calculating fuel used for travel on and off public roads if you use this method.
You can’t use the ATO Fuel tax credit calculator to calculate the basic method for heavy vehicles.
Instead, this calculation must be done manually in 4 steps as follows:
Step 1: Work out how many kilometres you travelled on public roads.
To work out the kilometres travelled on public roads either using the:
- derived number of kilometres travelled
- actual number of kilometres travelled.
Use the derived number of kilometres travelled if you haven’t kept accurate records of the actual number of kilometres you travelled on public roads. To work this out, multiply the total number of kilometres travelled by 98.4%.
The formula is:
Total number of kilometres travelled × 98.4%.
If you use the derived number of kilometres travelled, you need to keep records that show your total kilometres travelled, such as logbooks or odometer readings.
To use the actual number of kilometres travelled on public roads, you need to keep records that show the distances you travelled from starting destinations to end destinations.
Step 2: Calculate litres of diesel used for travelling on public roads.
Calculate the litres of diesel used on public roads by multiplying the kilometres travelled on public roads (step 1) by the diesel consumption rate, in the table below:
|
Vehicle classification by gross weight |
Accepted litres per km |
|---|---|
|
> 4.5 tonnes and ≤ 12 tonnes |
0.18 |
|
˃ 12 tonnes and ≤ 16.5 tonnes |
0.23 |
|
˃ 16.5 tonnes and ≤ 24 tonnes |
0.28 |
|
˃ 24 tonnes and ≤ 30 tonnes |
0.32 |
|
˃ 30 tonnes |
0.35 |
The formula is:
Kilometres travelled on public roads (step 1) × diesel consumption rate (in the table above).
Step 3: Calculate litres of diesel used off public roads.
Calculate the litres of diesel used off public roads by subtracting the litres of diesel used for travelling on public roads from the total litres of eligible diesel.
The formula is:
Total litres of eligible diesel (step 1) – litres of diesel used for travelling on public roads (step 2).
Step 4: Calculate your fuel tax credits for the tax period.
Work out your fuel tax credit claim amount in dollars:
- Multiply the litres of diesel used for travelling on public roads by the heavy vehicles travelling on public road rate.
- Multiply the litres of diesel fuel used off public roads by the all other business uses rate.
- Add these two amounts together – this is the amount of fuel tax credits to claim (in dollars) in your BAS.
The formula is:
Litres of diesel used for travelling on public roads (step 2) × the heavy vehicles travelling on public road rate.
+
Litres of diesel used off public roads (step 3) × the all other business uses rate.
=
Amount to claim in dollars in BAS.
Go to the ATO website for fuel tax credit rates. The rates change regularly, so it's important you check you are using the right rate.
Example
