National Fuel Security Plan — Temporary Fuel Tax Credit Changes

These changes will impact fuel prices and fuel tax credit claims for businesses using diesel and other fuels.

What Has Changed

From 1 April 2026 to 30 June 2026, fuel excise for diesel and petrol has reduced from 52.6 cents to 20.6 cents per litre - this is a reduction of over 50%.

In addition to this, heavy vehicle road user charge has been reduced to zero and the next heavy vehicle road user charge increase has been deferred for 6 months. 

These changes are temporary and apply to the June 2026 quarter. 

For a further break-down of fuel tax credit rates for the 2026 financial year, visit the ATO's website here. 

Fuel Tax Credit Impact — June 2026 Quarter

On-Road Heavy Vehicles (Over 4.5 Tonnes)

Heavy vehicles travelling on public roads typically have their fuel tax credits reduced by the road user charge.

As the road user charge has temporarily been reduced to zero, on-road operators will continue to receive fuel tax credits at a similar rate to prior quarters.
For the period 1 April to 30 June 2026, the applicable rate is 20.6 cents per litre.

As a result, the majority of on-road transport operators will see little to no change in their fuel tax credit entitlements for the June 2026 quarter.

Off-Road Users (all other business uses)

Businesses using fuel off public roads would normally be entitled to the full fuel tax credit rate.

However, due to the reduction in fuel excise, the available credit has also reduced. For the period 1 April to 30 June 2026, the rate is 20.6 cents per litre (down from 52.6 cents per litre).

What You Should Do Now

These temporary rates apply only to fuel purchased between 1 April 2026 and 30 June 2026.

Businesses should:

• Apply the new rates when preparing their June 2026 BAS
• Review fuel usage and ensure March and April purchases are correctly split between the applicable rates
• Update accounting software to reflect the new rates

If you are unsure how these changes impact your business or require assistance with your BAS, please contact your trusted Ruddicks adviser.

DISCLAIMER:

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The content of this newsletter is general in nature. It does not constitute specific advice and readers are encouraged to consult their Ruddicks adviser on any matters of interest. Ruddicks accepts no liability for errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. This information is current as at 8 April 2026, and was published around that time.  Ruddicks particularly accepts no obligation or responsibility for updating this publication for events, including changes to the law, the Australian Taxation Office’s interpretation of the law, or Government announcements arising after that time. 

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