If you run a business in Australia that relies on vehicles or machinery, you already know that fuel is one of your biggest overheads. But did you know that the rules around how much of that cost you can claim back just changed significantly?
On 1 April 2026, the Australian Taxation Office introduced temporary changes to fuel excise and fuel tax credit rates. While these measures are designed to provide relief from soaring pump prices, they’ve also created a major administrative headache for small businesses and fleet managers.
In my experience, whenever the ATO changes the rules mid-quarter, thousands of businesses end up underclaiming their entitlements simply because the paperwork is too complicated. If you’re still relying on your drivers to hand in crumpled paper receipts at the end of the month, there’s a very high chance you’re leaving money on the table.
What Changed on 1 April 2026?
To combat the rising cost of living and the impact of global oil supply disruptions, the Australian Government implemented a temporary reduction in fuel excise.
Because fuel tax credit rates are directly tied to the amount of excise duty payable on fuel, the ATO had to adjust the credit rates accordingly.
This means that the rate you can claim for fuel acquired before 1 April 2026 is completely different from the rate you must use for fuel acquired from 1 April 2026 to June 30 2026.
For example, if you’re preparing your Business Activity Statement (BAS) and you’ve got a pile of receipts from March and a pile from April, you can’t just add up the total litres and apply a single rate. You must meticulously separate your purchases by date and apply the correct rate to each batch.
Furthermore, for heavy vehicles travelling on public roads, the road user charge has been temporarily set to zero from 1 April to 30 June 2026. This means you can claim fuel tax credits equal to the full excise duty payable on the fuel during this period.
The Hidden Cost of Paper Receipts
- Lost Receipts Mean Lost Money: If a driver loses a receipt from March, you can’t claim the higher credit rate for that purchase. You lose that cash entirely.
- The Administrative Burden: Your bookkeeper or accountant now has to spend hours sorting through dockets, verifying dates, and calculating two different sets of rates for a single BAS period. This wastes valuable time and increases your accounting fees.
- Audit Risk: The ATO is very strict about substantiation. If you accidentally apply the wrong rate to a batch of fuel, or if a receipt is illegible, you could face penalties during an audit.
How a Fuel Card Solves the FTC Headache Instantly
I consistently advise businesses that the easiest, most foolproof way to manage fuel tax credits — especially during periods of legislative change — is to use a corporate fuel card.
See which fuel card fits your business
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A fuel card completely eliminates the need for paper receipts. Instead, you receive a single, consolidated, ATO-compliant invoice at the end of your billing cycle. This invoice automatically separates your fuel purchases by date, calculates the exact number of litres purchased, and clearly itemises the GST.
When the ATO changes the fuel tax credit rates, your fuel card provider’s reporting tools do the heavy lifting for you. Your accountant simply logs into the portal, runs a report, and has the exact figures needed for your BAS in minutes, with zero risk of human error.
The Best Fuel Cards for Easy ATO Compliance
- Shell Card: If your fleet frequently uses Shell stations, this card offers both great reporting and massive upfront savings. At the time of writing, Shell is offering a highly aggressive promotional discount of up to 7c per litre off fuel for the first 6 months, along with $0 monthly card fees.
Save 7c/l + $0 card fees in promo period
- WEX Motorpass: This card is renowned for its robust reporting capabilities. It integrates seamlessly with major accounting software, making BAS time a breeze. At the time of writing, WEX Motorpass is offering a fantastic deal with $0 management fees for 6 months when you use the promo code ZEROFEE26. It’s accepted at over 6,500 locations, giving your drivers total flexibility.
$0 card fees
- FleetCard: Another excellent option for comprehensive expense management. FleetCard provides detailed, ATO-approved statements that make claiming your fuel tax credits incredibly simple. It’s accepted at over 6,200 locations, including Shell, Ampol, and 7-Eleven.
Save up to 6c per litre on fuel for your business
Don’t Leave Your Cash with the ATO
The temporary changes to the fuel tax credit rates are designed to help your business, but you can only benefit if you claim them correctly. Don’t let complicated paperwork or lost receipts cost you money.
By switching to a business fuel card like Shell Card, WEX Motorpass, FleetCard, you automate your compliance, simplify your accounting, and guarantee that you claim every single dollar you’re owed.
See which fuel card fits your business
Check eligibility
