Fuel Tax Rebate Confusion

National Road Transport Association

NatRoad has had a number of recent inquiries about the current fuel tax rebate rates. The rates are currently set out at the ATO web site: https://www.ato.gov.au/business/fuel-schemes/fuel-tax-credits—business/rates—business/

NatRoad questioned the accuracy of the published rates, and the ATO clarified how they had been reached. In summary:

  • FTC rates for heavy vehicles for travelling on a public road increased to 16.9 cpl as part of the February 2021 indexation.
  • The rates then dropped to 16.3 cpl from 1 July as a result of the Road User Charge (RUC) increase.
  • The rates then increased to 16.9 cpl as part of the August 2021 indexation.

The confusion around the rates appears to be related to the RUC – which increased on 1 July from 25.8 cpl to 26.4 cpl. This affected the FTC rate for heavy vehicles travelling on a public road.

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