Fuel tax credits are assessable income for income tax purposes. They are part of your business income so you need to include them in your tax return, at the ‘Assessable government industry payments’ label.

You also need to include your fuel tax credits as part of your PAYG instalment income, at label T1 on your BAS.

Fuel tax credits can only be claimed on your BAS. They can’t be claimed on your annual GST return.

If you pay GST instalments and register for fuel tax credits, you will no longer receive instalment notices. Instead, you will receive a quarterly BAS.