fuel pumps

Changes to fuel tax credit rates

Fuel tax credit rates for business

Fuel tax credit rates change regularly.

Key points

  • Using the fuel tax credit calculator is the easiest way to work out what you can claim in your business activity statement (BAS), or calculate an adjustment or correction for a previous BAS
  • Before claiming fuel tax credits, check your eligibility to claim using the ATO’s eligibility tool
  • Fuel tax credit rates are indexed twice a year – in February and August – in line with the consumer price index (CPI). The CPI indexation factor for rates from 5 February 2024 is 1.018.

Fuel excise duty was temporarily reduced from 30 March 2022 to 28 September 2022. This reduction applied to excise and excise equivalent customs duty rates for petrol, diesel and all other fuel and petroleum-based products (except aviation fuels). This affected the fuel tax credit rates during that period.

Fuel tax credit rates also change for fuel (liquid fuels such as petrol and diesel, and gaseous fuels such as liquefied natural gas) used in a heavy vehicle for travelling on a public road due to changes in the road user charge.

Rates for biodiesel (B100) will also change each year until 1 July 2030.

Current fuel tax credit rates

For current fuel tax rates, see From 1 July 2024 to 4 August 2024.

Past fuel tax credit rates

There are time limits for claiming fuel tax credits or making adjustments and correcting errors. You need to claim your fuel tax credits within 4 years of the due date of the earliest BAS in which you could have made your claim. If you don’t claim the credits within that time, you’ll no longer be eligible to claim them. Use the fuel tax credit calculator to work out the amounts for your BAS up to 4 years ago.

Always keep accurate records to support your claims:


car buying private or business

Changes to car thresholds from 1 July

The following car threshold amounts will apply for the 2024–25 financial year.

Income tax

  • The car limit for 2024–25 is $69,674. This is the highest value you can use to calculate depreciation on a car where both of the following apply:
    • you use the car for business purposes
    • you first use or lease the car in the 2024–25 income year.
  • As a business owner, you can claim a tax deduction for expenses for motor vehicles you use for business purposes.
  • If you use a motor vehicle for both business and private purposes, you can only claim a deduction for the business part. You must be able to show the percentage you claim as business use and have records to support your claim.

Goods and services tax (GST)

  • If you buy a car and the price is more than the car limit, the maximum GST credit you can claim (except in certain circumstances) is one-eleventh of the car limit. For the 2024–25 income year, the maximum GST credit you can claim is $6,334 (that is, 1/11 × $69,674).
  • You can’t claim a GST credit for any luxury car tax you pay when you buy a luxury car, even if you use it for business purposes.

Luxury car tax (LCT)

  • The LCT threshold for 2024–25 is:
    • $91,387 for fuel-efficient vehicles. This is in line with an increase to the motor-vehicle purchase sub-group of the Consumer Price Index (CPI)
    • $80,567 for all other luxury vehicles, in line with an increase in the ‘All Groups’ CPI.

If you’re looking to buy a luxury car, remember to be cautious of those who offer to buy one from a dealer on your behalf at a discount. This may be a scheme to evade LCT. You may be at risk if they don’t have the right insurance or if the car is damaged or defective.

To find out more about LCT, including when you need to apply it and what’s included in the LCT value of a car, visit the Luxury car tax page on the ATO’s website.


electric vehicle EV

Electric vehicle demand trending upwards

Shift in Australian vehicle preferences

New Roy Morgan research findings highlight the evolving preferences of Australian consumers’ vehicle purchases.

This trend signals a changing landscape in the automotive industry:

  • Over the next four years, more than 4.3 million Australians plan to buy a new vehicle
  • A significant shift has emerged in the intention to purchase hybrid or fully electric vehicles, surpassing petrol cars
  • Interest in petrol vehicles, although still the leading choice for new car purchases at 39%, has decreased by 81,000 compared to the previous year.

In 2023, the automotive industry saw record-breaking sales, with Australians considering the purchase of a new vehicle in the coming years. The most notable increase in interest lies in hybrid vehicles, with 1,273,000 Australians (30% of new car intenders) planning to purchase one, marking a rise of 154,000 from the previous year.

Fully electric cars also gained traction, with 607,000 Australians intending to purchase an electric vehicle, up by 37,000 from the previous year.

Conversely, diesel cars are experiencing a decline in popularity, with only 498,000 Australians intending to purchase one in the next four years, down by 130,000 from the previous year, representing 12% of new car intenders.

The shifting trends towards hybrid and electric vehicles suggest that it’s essential for consumers to stay informed about the evolving automotive market.

As part of your due diligence when exploring the benefits of vehicle models and how they align with your needs and preferences, talk with the team at Allan Hall for financing advice and about the tax and FBT implications of owning electric or hybrid models.


fuel pumps

Register for fuel tax credits

Check if you can claim for fuel tax credits

You can claim credits for the fuel tax (excise or customs duty) included in the price of fuel used in business activities.

You can claim for taxable fuel that you purchase, manufacture or import. Just make sure it’s used in your business. Taxable fuels include liquid fuels, fuel blends and gaseous fuels.

Check what activities you can claim for

You can claim for business activities in:

  •  machinery
  •  plant
  •  equipment
  •  heavy vehicles over 4.5 tonnes
  •  light vehicles on private roads (not on public roads)

To be able to claim, you must be registered for goods and services tax (GST) and fuel tax credits.

Register for fuel tax credits (and other taxes)

Register for fuel tax credits through the Business Registration Service. You can use the same form to register for other taxes at the same time.

Before you apply:


ipad logbook

2024 FBT Motor Vehicle Declarations

Fringe Benefits Tax (FBT) Motor Vehicle Declarations due

Form/s must be submitted to Allan Hall’s office by 30 April 2024

The Australian Taxation Office requires all companies and trusts that have motor vehicles to keep odometer records of the total kilometres travelled during the year.

As the Fringe Benefits Tax year ends on 31 March, the odometer readings on each vehicle should be recorded at 31 March 2024.

Please use our form below to submit your odometer reading to us:

  • a separate declaration should be prepared for each vehicle, and
  • please retain a copy of the information for your own records.
Or scan this code on a phone or tablet to access our form.

The form/s must be submitted to our office by 30 April. Should you have any queries please contact our Tax and Accounting Team in Brookvale on 02 9981 2300.


car buying private or business

Car limit for depreciation

Assets and exclusions

The maximum value for calculating depreciation on the business use of a car first used or leased in the 2023–24 income year has increased to $68,108.

There is a limit on the cost to work out the depreciation of passenger vehicles (except motorcycles or similar vehicles) designed to carry a load of less than one tonne and fewer than nine passengers.

The maximum value for calculating a claim is the car limit, irrespective of any amount paid for a trade-in in the year in which the car was first used or leased.

Income yearCar limitATO reference
2023–24$68,108The indexation factor is 1.052, calculated as 435.5 divided by 413.8
2022–23$64,741The indexation factor is 1.066, calculated as 413.8 divided by 388.1
2021–22$60,733The indexation factor is 1.027, calculated as 388.1 divided by 377.9
2020–21$59,136The indexation factor is 1.027, calculated as 377.9 divided by 368.1
2019–20$57,581No indexation – the indexation factor is 0.987 calculated as 368.1 divided by 373.0
For examples of how to apply the car limit visit the ATO website

How the yearly car limit is calculated

The car limit is indexed annually in line with movements in the motor vehicle purchase sub-group of the consumer price index.

The indexation factor is calculated by dividing the sum of the index numbers for the quarters in the year ending 31 March by the same numbers for the quarters in the year ending on the previous 31 March.

The car limit amount is then indexed by multiplying it by the indexation factor unless the indexation factor is one or less.



Does FBT apply to dual cab utes?

FBT on cars, other vehicles, parking and tolls

How FBT applies to cars, other motor vehicles, electric cars, car leasing, car parking and road tolls.

It’s a common myth that fringe benefits tax (FBT) doesn’t apply to dual cabs. However, this isn’t correct.

Here’s what you need to know about FBT

Cars and FBT
Read how FBT applies to cars, private versus business use, car leasing, and calculating the value of a car fringe benefit.

Exempt use of eligible vehicles
Your employee’s limited private use of a ute, van or other eligible vehicle may be exempt from FBT. Read more »

Electric cars exemption
From 1 July 2022 employers do not pay FBT on eligible electric cars and associated car expenses. Read more »

Car parking and FBT
Read how FBT applies to car parking, exemptions for small businesses and disabilities and how to calculate taxable value.

Road and bridge tolls and FBT
Find out when FBT applies to road and bridge tolls, and work out the taxable value of tolls.

While there’s an exemption for eligible commercial vehicles, this applies only if private use is limited. If you are taking the work ute to the footy every weekend, you may need to re-evaluate your FBT obligations.


eofy 30 june

End of Temporary Full Expensing 30 June

Just under a month to go before the Temporary Full Expensing Measures finish up

The temporary full expensing rules allow eligible businesses to claim a tax deduction for the full cost of eligible depreciable assets (except for motor vehicles which are subject to the current car cost limit of $64,741).

Key changes

  • The temporary full expensing measures that have allowed small and medium businesses to write off the full cost of new assets, with no limit, (other than the cost limit on motor vehicles) is scheduled to end on 1 July 2023
  • Any business considering purchasing assets and utilising these measures prior to this date should plan now — it is important to note that to receive the deduction, an asset must be installed and ready for use.

To claim the deduction in full, in the year the asset is acquired, the asset must be installed and ready for use and must be used for a taxable purpose.

Temporary full expensing supports businesses and encourages investment, as eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use for a taxable purpose.

From 1/7/2023 to 30/6/2024, businesses with turnover up to $10M will be entitled to claim an immediate tax deduction for assets costing $20,000 or less. Assets purchased above this amount will not get an immediate deduction.


Coat of arms of Australia

2023-24 Federal Budget

Tax and Superannuation Overview

2023-24 Federal Budget Highlights

The Federal Treasurer, Dr Jim Chalmers, handed down the 2023–24 Federal Budget at 7:30 pm (AEST) on 9 May 2023.

The Budget forecasts the underlying cash balance to be in surplus by $4.2 billion in 2022–23, the first surplus since 2007–08, followed by a forecast deficit of $13.9 billion in 2023–24.

The Treasurer has described the tax measures as “modest but meaningful” including changes to the Petroleum Resources Rent Tax and confirmation of a 1 January 2024 implementation of the BEPS Pillar Two global minimum tax rules.

A range of measures provide cost-of-living relief to individuals such as increased and expanded JobSeeker payments and better access to affordable housing. No changes were announced to the Stage 3 personal income tax cuts legislated to commence in 2023–24.

As part of the measures introduced for small business, a temporary $20,000 threshold for the small business instant asset write-off will apply for one year, following the end of the temporary full expensing rules.

The full Budget papers are available at www.budget.gov.au and the Treasury ministers’ media releases are available at ministers.treasury.gov.au. The business tax and superannuation highlights are set out below.

Business highlights

  • The instant asset write-off threshold for small businesses applying the simplified depreciation rules will be $20,000 for the 2023–24 income year.
  • An additional 20% deduction will be available for small and medium business expenditure supporting electrification and energy efficiency.
  • FBT exemption for eligible plug-in hybrid electric cars will end from 1 April 2025.
  • Employers will be required to pay their employees’ superannuation guarantee (SG) entitlements at the same time as they pay their salary and wages from 1 July 2026.

Small business depreciation — instant asset write-off threshold of $20,000 for 2023–24

The instant asset write-off threshold for small businesses applying the simplified depreciation rules will be $20,000 for the 2023–24 income year.

Small businesses (aggregated annual turnover less than $10 million) may choose to calculate capital allowances on depreciating assets under a simplified regime. Under these simplified depreciation rules, an immediate write-off applies for low cost depreciating assets. The measure will apply a $20,000 threshold for the immediate write-off, applicable to eligible assets costing less than $20,000 first used or installed between 1 July 2023 and 30 June 2024. The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write-off multiple low-cost assets. The threshold had been suspended during the operation of temporary full expensing from 6 October 2020 to 30 June 2023.

Assets costing $20,000 or more will continue to be placed into a small business depreciation pool under the existing rules.

The provisions that prevent a small business entity from choosing to apply the simplified depreciation rules for 5 years after opting out will continue to be suspended until 30 June 2024.

Increased deductions for small and medium business expenditure on electrification and energy efficiency

An additional 20% deduction will be available for small and medium business expenditure supporting electrification and energy efficiency.

The additional deduction will be available to businesses with aggregated annual turnover of less than $50 million. Eligible expenditure may include the cost of eligible depreciating assets, as well as upgrades to existing assets, that support electrification and more efficient use of energy. Certain exclusions will apply, including for electric vehicles, renewable electricity generation assets, capital works, and assets not connected to the electricity grid that use fossil fuels.

Examples of expenditure the measure will apply to include:

  • assets that upgrade to more efficient electrical goods (eg energy-efficient fridges)
  • assets that support electrification (eg heat pumps and electric heating or cooling systems), and
  • demand management assets (eg batteries or thermal energy storage).

Total eligible expenditure for the measure will be capped at $100,000, with a maximum additional deduction available of $20,000 per business.

When enacted, the measure will apply to eligible assets or upgrades first used or installed ready for use between 1 July 2023 and 30 June 2024. Full details of eligibility criteria will be finalised in consultation with stakeholders.

FBT exemption for eligible plug-in hybrid electric cars to end

The FBT exemption for eligible plug-in hybrid electric cars will end from 1 April 2025.

Arrangements involving plug-in hybrid electric cars entered into between 1 July 2022 and 31 March 2025 remain eligible for the exemption.

Employers to be required to pay SG on payday

Employers will be required to pay their employees’ superannuation guarantee (SG) entitlements at the same time as they pay their salary and wages from 1 July 2026.

Employers are currently required to make SG contributions for an employee on a quarterly basis to avoid incurring a superannuation guarantee charge.

The proposed commencement date of 1 July 2026 is intended to provide employers, superannuation funds, payroll providers and other stakeholders sufficient time to prepare for the change.

Changes to the design of the superannuation guarantee charge will also be required to align with the increased payment frequency. The government will consult with relevant stakeholders on the design of these changes, with the final framework to be considered as part of the 2024–25 Budget.

In addition, funding will be provided to the ATO to, among other things, improve data matching capabilities to identify and act on cases of SG underpayment.

Superannuation measures

  • Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million from 1 July 2025.
  • The non-arm’s length income (NALI) provisions will be amended to provide greater certainty to taxpayers.

Reducing tax concessions for super balances exceeding $3M

Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million.

From 1 July 2025, earnings on balances exceeding $3 million will incur a higher concessional tax rate of 30% (up from 15%) for earnings corresponding to the proportion of an individual’s total superannuation balance that is greater than $3 million. The change does not impose a limit on the size of superannuation account balances in the accumulation phase and it applies to future earnings, ie it is not retrospective.

Earnings relating to assets below the $3 million threshold will continue to be taxed at 15%, or zero if held in a retirement pension account.

Interests in defined benefit schemes will be appropriately valued and will have earnings taxed under this measure in a similar way to other interests.

Need help?

If you would like assistance to interpret these changes and how they may affect your individual or business circumstances, please contact your Allan Hall Advisor on 02 9981 2300.