Fuel continues to be a hot topic in our world, and from a tax perspective we can provide an update on rates for claiming fuel tax credits, as well as the at-home charging rate for electric vehicles.
There was a temporary reduction in fuel excise that came into effect on 1 April 2026. Due to this reduction, it’s important to ensure you are using the right rates when making your next claim. This means that there are two different rates to be calculated, both before 1 April 2026 and after 1 April 2026. This will impact your Business Activity Statement (BAS) reporting. Because fuel tax credits are calculated based on the excise rate in the fuel price, this temporary reduction means you may receive a lower fuel tax credit when claiming on your BAS for fuel acquired from 1 April 2026.
Fuel tax charging rates
| Category | Before 1 April 2026 | From 1 April 2026 | Notes |
| Regular vehicles (petrol/diesel excise) | 52.6 cents per litre | 20.6 cents per litre (temporary reduction) | 60.9% reduction for cost‑of‑living relief (1 Apr–30 Jun 2026). |
| Heavy vehicles – Road User Charge (RUC) | 32.4 cents per litre | 0 cents per litre (temporarily removed) | Applies to fuel used on public roads; normally deducted from fuel tax credits.
(1 Apr–30 Jun 2026). |
| Heavy vehicles – effective fuel tax (excise minus RUC) | 20.2 cents per litre | 20.6 cents per litre | Net position shifts because excise drops but RUC also removed.
(1 Apr–30 Jun 2026). |
(RUC = Road User Charge)
Charging rate for electric vehicles
From an electric vehicle perspective, the standard home-charging rate has been updated from 4.20 cents per km to 5.47 cents per kilometre, which also applies from 1 April 2026 for the purposes of FBT and from 1 July 2026 for the purposes of income tax.
EV home‑charging rate
| Category | Before 1 April 2026 | From 1 April 2026 (FBT) | From 1 July 2026 (income tax) |
| EV home‑charging rate (cents per km) | 4.20 cents/km | 5.47 cents/km | 5.47 cents/km |
If you have any questions about these fuel/EV tax changes and how they may impact you, please contact us.
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