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Fuel tax credits

Fuel tax credits are amounts you can claim for the fuel tax included in the price of fuel you acquire and use for your business activities.

You can refer to the ATO’s fuel tax credit tools to find out if you are eligible to claim, and to calculate how much you can claim.

Your business must be registered for both fuel tax credits and GST before you can claim fuel tax credits. For more information, see the ATO website.

Managing fuel tax credits in MYOB

If your business receives fuel tax credits, you can record the amount using a journal entry.

The journal entry would involve two accounts:

  • A 4-XXXX or  8-XXXX Income  account which would be credited. This increases income which amounts to decreasing expense.

  • A choice of a  2-XXXX Liability  account or  1-XXXX Asset  account which would be debited.

Ask an expert

The accounts you set up for fuel tax credits will be specific to your business needs, so you might need help from an accounting advisor or check with the experts on the community forum.

For example, if you want to keep your tax credit account grouped with your other tax liability accounts, such as GST collected and paid, you'd likely choose a liability account. For information on creating accounts, see Adding, editing and deleting accounts. 

Here's an example journal entry for a $1000 fuel tax credit for a reporting period: 

Example fuel tax credit journal

FAQs

How do I determine the amount of fuel tax credit I'm eligible to claim?

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To determine the amount of fuel tax credit you are eligible to claim for a given BAS period, use the ATO's Fuel tax credit calculator.

What BAS fields are used for fuel tax credits?

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The following BAS fields are used for fuel tax credits:

  • 7C (Fuel tax credit over claim) - This field is used to record fuel tax credits that may have been over-reported in previous periods

  • 7D - (Fuel tax credit) - This field is used to claim fuel tax credits

When you lodge your activity statement, fields 7C and 7D will be available if you're registered for fuel tax credits with the ATO. You'll need to manually add values to these fields when preparing your activity statement.