Fuel Tax Credit Calculator for Arborists
Most arborists leave $500-$5,000+ per year on the table. Calculate what you could claim back from the ATO in 30 seconds. Updated for the current 2026 fuel tax credit rates.
⚠️ April–June 2026 Update: The fuel excise has been temporarily cut from 52.6 c/L to 20.6 c/L under the National Fuel Security Plan. The calculator below defaults to the temporary rate. This rate reverts on 1 July 2026. Read the full breakdown.
Fuel Tax Credit Calculator
Estimate your annual FTC claim on off-road equipment fuel
E.g., 50L/week for a solo arborist running 1 chipper 2-3 days/weekBook Free Strategy Call →
What This Calculator Does
This calculator gives you a quick, realistic estimate of how much you can claim back from the ATO under the Fuel Tax Credit (FTC) scheme for diesel used in your off-road arborist equipment. Plug in three numbers – litres of diesel per week, weeks worked per year, and the current FTC rate – and you’ll see your annual claim plus the four years of retrospective claims you may still be eligible to lodge.
It is built specifically for arborists and tree care businesses. The defaults assume a sole operator running a chipper and stump grinder a few days per week. If you run a crew with multiple machines, your numbers will be much higher.
What Is the Fuel Tax Credit?
The Fuel Tax Credit scheme is an ATO program that lets GST-registered businesses claim back the fuel excise built into the price of diesel (and some other fuels) when that fuel is used for eligible business activities. The federal government taxes fuel at the pump – the FTC scheme refunds the portion of that excise you shouldn’t have paid because you’re not using public roads.
Who Is Eligible?
You can claim FTC if your business is registered for GST and you use taxable fuel in eligible activities. For arborists, the most common eligible uses are:
- Running a wood chipper, stump grinder, or other off-road equipment
- Powering generators on a job site
- Diesel chainsaws and auxiliary motors
- Operating equipment on private property (not on public roads)
- Running a tipper or truck off-road on a job site
Sole traders, partnerships, companies, and trusts are all eligible as long as they are registered for GST.
FTC Rates (2026)
The ATO updates fuel tax credit rates twice a year. Important: From 1 April to 30 June 2026, the fuel excise has been temporarily cut under the National Fuel Security Plan. The rates below reflect the temporary reduced rates. Read our full breakdown of the fuel excise cut 2026.
| Fuel use | Rate (cents per litre) |
|---|---|
| Diesel – off-road business use (chippers, grinders, generators, machinery) | 20.6 (temporary Apr–Jun 2026; was 52.6) |
| Diesel – heavy vehicles (4.5t+) on public roads | 20.6 (road user charge set to zero Apr–Jun 2026) |
| Petrol – off-road business use | 20.6 (temporary Apr–Jun 2026; was 52.6) |
The big difference between off-road (52.6 c/L) and on-road heavy vehicles (20.2 c/L) is the road user charge – the portion of the excise the government keeps to fund roads. Off-road equipment doesn’t use public roads, so you get the full credit. View the current rates on the ATO website.
Common Arborist Equipment Fuel Consumption
Don’t know how many litres you burn each week? Use these rough rules of thumb to estimate. Multiply hourly usage by your typical hours per week:
| Equipment | Typical fuel consumption |
|---|---|
| Wood chipper (6″-12″ capacity) | 8-15 L/hour |
| Stump grinder | 5-10 L/hour |
| Diesel chainsaw / auxiliary motor | 2-4 L/hour |
| Job site generator | 3-6 L/hour |
| Mini excavator / skid steer | 6-12 L/hour |
Worked example: A solo arborist running a chipper for 12 hours and a stump grinder for 4 hours each week burns roughly (12 x 10) + (4 x 7) = 148 litres of diesel per week. Over 48 working weeks at 52.6 c/L, that’s 148 x 48 x 0.206 = $1,464 per year (at temporary rate; reverts to ~$3,737 from 1 July 2026) in fuel tax credits. Back-claims for prior years use the full 52.6 c/L rate — that could mean $15,000+ sitting with the ATO.
How to Claim Fuel Tax Credits
- Register for GST – you must be GST-registered before you can claim FTC.
- Keep your fuel receipts – tax invoices showing date, supplier, and litres purchased. Most fuel cards (BP Plus, Caltex StarCard, Shell Card) generate compliant statements automatically.
- Track off-road vs on-road use – if you use the same diesel for a ute on public roads and a chipper on a job site, you need a way to apportion. A logbook, hour meter readings, or a percentage method are all acceptable to the ATO.
- Calculate your claim – litres x rate / 100 = dollars. The rate depends on the fuel type and use.
- Claim it on your BAS – enter the dollar amount at label 7D (Fuel tax credit) on your Business Activity Statement. The ATO will refund or offset it.
- Or let your BAS agent handle it – if you use an accountant or BAS agent, they should already be doing this. If they’re not, ask why.
Small business simplification: if your annual FTC claim is less than $10,000 you can use the simplified method and apply the rate that was in force at the end of the BAS period to all fuel purchased in that period. No need to split mid-period when rates change.
Common Mistakes Arborists Make with FTC
- Not claiming at all. By far the biggest mistake. Many arborists have never been told FTC exists, so they leave thousands of dollars per year sitting with the ATO.
- Claiming the wrong rate on ute or truck fuel. Diesel used in a ute on public roads usually doesn’t qualify (under 4.5t). Diesel in a heavy vehicle on public roads gets the lower 20.2 c/L rate, not the off-road 52.6 c/L rate.
- No records. The ATO can request fuel invoices and apportionment workings going back five years. No records = no claim (and possible repayment with penalties).
- Forgetting to back-claim. You can amend prior BAS periods to claim missed FTC for up to four years. This is free money sitting in plain sight.
- Mixing up petrol and diesel rates. Different fuels, different rates. Get it wrong on a big claim and you’ll trigger an ATO review.
- Claiming on bottled LPG. Most LPG used in business is not eligible for FTC. Check before claiming.
Frequently Asked Questions
Can I claim fuel tax credits as a sole trader arborist?
Yes. Sole traders can claim FTC as long as they are registered for GST and use taxable fuel in eligible business activities. The same rules and rates apply to sole traders, partnerships, companies, and trusts. You claim the dollar amount at label 7D on your quarterly or monthly BAS.
What records do I need to claim FTC?
You need tax invoices for fuel purchases (or fuel card statements), records showing how the fuel was used (logbooks, hour meters, or a documented percentage method), and a calculation showing how you arrived at the claim amount. Keep all records for at least five years. Most accounting software (Xero, MYOB, QuickBooks) has built-in FTC tracking once it’s set up properly.
How far back can I claim FTC?
You can amend a previously lodged BAS to claim missed fuel tax credits for up to four years from the end of the period in which the fuel was acquired. For most arborists who have never claimed FTC, this means four years of back-claims worth thousands of dollars – paid as a refund or offset against your next BAS liability.
Does my diesel ute or truck qualify?
It depends on weight and where you drive it. A diesel ute under 4.5 tonnes used on public roads doesn’t qualify. A heavy vehicle (4.5t or more) on public roads qualifies for the on-road rate (20.2 c/L). Any diesel vehicle used off public roads – on a private job site, in a forest, on a property – qualifies for the full off-road rate (52.6 c/L). If you use the same vehicle for both, you need to apportion the fuel between the two uses.
How do I make sure I’m claiming correctly?
The safest approach is to have a BAS agent or accountant who specialises in trade businesses set up your tracking system once, then run your claims each BAS period. At Arbour Advisory we set up FTC tracking for arborists as part of our standard bookkeeping service – including back-claiming up to four years of missed credits. Book a free strategy call to find out how much you could be claiming.
Want Us to Handle This for You?
Setting up fuel tax credit tracking takes about an hour. Once it’s running, every BAS period delivers a refund cheque or offset that most arborists never knew existed. We’ve seen first-time clients recover $5,000-$15,000 in back-claims alone, then continue claiming $2,000-$8,000+ per year going forward.
Book a free strategy call and we’ll review your fuel usage, calculate your potential claim (including back-claims), and show you how to integrate FTC into your BAS workflow. No obligation – just a clear picture of what you’ve been missing.
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