What are Fuel Tax Credits?

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Fuel Tax Credits (FTC) allow Australian businesses to claim back the fuel tax included in the price of fuel used for business activities, particularly for off-road and auxiliary equipment use.

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The amount you can claim depends on how and where fuel is used. Off-road fuel use can attract a higher credit than fuel used on public roads, making accurate identification of vehicle activity important when calculating a claim.

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V-DAQ’s integration with Nuonic, Australia’s leading Fuel Tax Credits software solution, puts your existing fleet data to work, using high-definition GPS data to help identify eligible on-road and off-road activity and support more accurate FTC claims.

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Who is eligible for Fuel Tax Credits?

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Businesses may be eligible for Fuel Tax Credits if they use fuel in their operations, including in machinery, plant, equipment or heavy vehicles. Eligibility depends on how and where the fuel is used, not just the type of business.

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To determine whether you can claim Fuel Tax Credits, refer to the ATO website for guidance on fuel acquired and used in your business activities.

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For transport operators, having an accurate record of where vehicles have travelled can make it much easier to identify eligible activity and substantiate a claim.

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How V-DAQ and Nuonic help maximise your Fuel Tax Credits

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V-DAQ captures detailed GPS data about your vehicle movements. Through our integration with Nuonic, that data can be analysed to identify eligible off-road activity and help calculate and substantiate your Fuel Tax Credit claim.

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How much you can claim comes down to where the fuel was used. Fuel used off public roads is credited at a higher rate than fuel used on public roads, because the road user charge is subtracted from the on-road rate. Get that split wrong and eligible off-road activity is claimed at the lower rate, or missed.

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Instead of manually reviewing vehicle movements or relying on manually maintained geofences, the integration makes better use of the fleet data you're already capturing. Geofences only cover the sites you have already mapped, so off-road activity somewhere you have not drawn a boundary can go unrecorded. Working from the actual path each vehicle travelled, the integration identifies eligible activity wherever it happens.

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With V-DAQ and Nuonic, you can:

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• Identify eligible on-road and off-road activity using detailed GPS data
• Capture off-road activity that may otherwise be missed
• Reduce the manual work involved in calculating Fuel Tax Credits
• Substantiate claims with detailed vehicle movement data
• Get more value from the fleet data you already have

A quick example. Take a fleet using 5,000 litres of diesel a month, with just 5% of it used off public roads:

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• Classified correctly, that off-road share is claimed at the higher rate
• Treated as all on-road, it drops to the lower rate
• The difference can be worth around $1,000 a year

Even a small off-road share adds up, and it is often the activity most easily overlooked. The larger the off-road share, the larger the gap. Rates change through the year, so it is worth checking the current figures on the ATO website.

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No additional tracking hardware. Just V-DAQ fleet data working with Nuonic's specialist Fuel Tax Credit capability.

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Recover up to 4 years of Fuel Tax Credits

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If your business has previously underclaimed Fuel Tax Credits, historical fleet data may also help uncover eligible activity that was missed.

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Depending on your circumstances, eligible businesses may be able to amend previous claims for up to four years, subject to ATO requirements. V-DAQ’s historical trip and location data can provide a record of past vehicle movements, while Nuonic can use available fleet data to help analyse eligible activity and support retrospective claims.

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What are the current Fuel Tax Credit rates?

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For the most up-to-date Fuel Tax Credit rates, visit the Australian Taxation Office (ATO).

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