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The fuel tax credit for farmers: what you can claim

A plain-English guide to claiming back fuel tax on farm diesel, based on ATO guidance.

Diesel used in farm machinery off public roads carries fuel tax that most farm businesses can claim back. It's one of the easiest wins in the farm books, and plenty of people under-claim.

Who can claim

  • You need to be registered for GST and registered for fuel tax credits with the ATO before you claim (ATO).
  • The fuel has to be used in carrying on your business, such as running tractors, headers, sprayers, pumps and generators on the farm.

What counts

  • Off-road use (machinery working in the paddock, pumps, generators, stationary engines): claimed at the full rate for that fuel.
  • Heavy vehicles on public roads (more than 4.5 tonnes gross vehicle mass, such as trucks carting grain): claimed at a lower rate, because the road user charge is taken off.
  • Light vehicles of 4.5 tonnes or less on public roads (most utes and cars): can't claim for fuel used on public roads.

Rates change, so check each time

Fuel tax credit rates change regularly, usually in February and August with indexation, and the road user charge can change too. Use the rate that applied on the day you bought the fuel. The current table is on the ATO rates page.

How to claim

  • Claim on your Business Activity Statement (BAS). You generally have four years to claim.
  • Keep fuel invoices and a simple record of how fuel was used (which machines, on-farm or on-road). A split based on a reasonable method is fine if you can explain it.
  • If your claims are small (under A$10,000 a year), the ATO offers simpler record-keeping options.

Quick checklist

  1. Registered for GST and fuel tax credits
  2. Fuel invoices kept
  3. On-farm vs on-road use recorded
  4. Correct rate for the purchase date
  5. Claimed on the BAS

Related: today's diesel prices. Talk to your accountant about your own situation.

Sources

General information only, not financial, legal or agronomic advice. Check details with the manufacturer, your dealer and product labels. Last reviewed 16 October 2026. Spot an error? Tell us.