Fuel tax credits: are you using the right rate? (October 2026)

If your business claims fuel tax credits, you should always make sure you’re using the correct rates before lodging your next BAS.

Fuel tax credit rates changed again on 3 August 2026 following CPI indexation. This is the fourth rate movement this year, following earlier changes in February, April and July.

For many businesses, the key issue is timing. Fuel tax credits are generally calculated using the rate that applied when the fuel was acquired, not when it was used. That means a single BAS period may include fuel purchased under more than one rate.

The changes can affect a wide range of businesses, including transport operators, primary producers, tradies, contractors and businesses that use fuel in plant, equipment or generators. Businesses that store bulk fuel may also need to pay particular attention to their records. Keeping clear information about purchase dates, fuel types and business use can make it much easier to calculate claims correctly.

The ATO recommends using its fuel tax credit calculator to help ensure the correct rates are applied.