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In a move aimed at easing cost‑of‑living pressures, the Federal Government has announced a three-month reduction in the fuel tax levy and the Heavy Vehicle Road User Charge, promising immediate relief at the bowser.
Following a meeting of the National Cabinet on Monday 30 March 2026, the Federal Government has announced a temporary halving of the fuel excise on petrol and diesel, aimed to ease financial stress in light of the ongoing conflict in the Middle East.
As part of the same package, the Government has confirmed a reduction of the Heavy Vehicle Road User Charge to zero, alongside releasing the National Fuel Security Plan.
The measures are designed to provide shortterm relief for motorists and cash-flow support for businesses, primarily those with high fuel usage. However, the temporary nature of the changes means businesses, especially those claiming fuel tax credits, will need to understand how the revised arrangements apply and manage compliance through the concession period.
How does it impact my Fuel tax credit claim?
| Unit: cents per litre | Fuel Excise (petrol and diesel) Unit: cents per litre effective 1 April 2026 to 30 June 2026 | Fuel tax credit Rebate – Used in heavy vehicles for travelling on public roads (i.e. GVM > 4.5t) | Fuel Tax Credit Rebate for all other business uses (including off-road use) |
| Diesel and unleaded | 26.3 | 26.3 | 26.3 |
| Blended fuels (B5, B20, E10) | 26.3 | 26.3 | 26.3 |
Fuel Excise and Heavy Vehicle Road User Charge – Before and After the Temporary Reduction
| Measure | Fuel Excise (petrol and diesel) Unit: cents per litre | Heavy Vehicle Road User Charge Unit: cents per litre |
| Before reduction | 52.6 | 32.4 |
| During reduction | 26.3 | 0 |
| Change | -26.3 | -32.4 |
| Timing | 1 April 2026 to 30 June 2026 (3 months) | 1 April 2026 to 30 June 2026 (3 months) |
| Practical effects | Lower cost of fuel for motorists and businesses | Higher fuel tax credit rebate available for heavy vehicle operators travelling on public roads. |
Although a temporary measure at this stage, it is a much needed saving for everyone, but especially businesses at the bowser.
If you need any assistance with your fuel tax credits please don’t hesitate to reach out the Theresa Myburgh at Theresa.myburgh@rsm.com.au or (08) 9261 9168 or any of your local RSM offices.
