Fuel Tax Credits are on the move again

Fuel tax credit rates are changing as the February indexation based on the upward movement of the Consumer Price Index (CPI) is applied.

Fuel tax credits are indexed twice a year, in February and August.

The CPI indexation factor for rates from 5 February 2024 is 1.018.

It’s important to stay on top of the rates as using the wrong one can cost your business money.

Check the full range of tables for fuel tax credit rates being applied from 1 July 2023 to 30 June 2024 on the ATO web page. You can also find the archive of past rates and the online calculator in this location.

You should be aware that fuel tax credit rates may also change for fuel used in a heavy vehicle for travelling on a public road as the Road User Charge (RUC) shifts.

The RUC is increasing by six percent each year over the next three years, rising from 28.8c per litre for petrol and diesel in 2023–24 to 30.5c per litre in 2024–25 and to 32.4c per litre in 2025–26.

The RUC rate for gaseous fuels per kilogram rate will increase from 38.5c per kilogram in 2023–24 to 40.8c per kilogram in 2024–25, to 43.2c per kilogram in 2025–26.

The current RUC reduces fuel tax credits for gaseous fuels to nil.

Note the rates for biodiesel (B100) changed in July 2023 due to an annual increase in excise duty rates.