Fuel rebates

Posted by: Team TvA
Date: 06 April 2022

On Monday 14th March 2022, the fuel tax was decreased by 25c per litre to compensate for rocketing fuel prices which means immediate savings.

All petrol, CNG, and LPG sold in New Zealand carry a tax called Fuel Excise Duty (FED), which funds the building and maintenance of our roads.  It makes sense then, that if the fuel is used off-road for commercial purposes, then you may be entitled to a refund of that excise duty.

Some examples of what can be claimed:

  • Quads and farm bikes.
  • Petrol tractors.
  • Stationary motors & generators.
  • Commercial vessels like a charter boat.
  • Any machinery used as part of your business including chainsaws, water blasters, water pumps used for irrigation.

What can’t be claimed:

  • Diesel and the ethanol component of biofuels do not have the FED included in the purchase price, therefore are not eligible for the rebate.  However, Road User Charges may also be eligible for a refund when used off-road.
  • The fuel needs to be used for commercial purposes, which means fuel used for personal, domestic, or household use does not qualify for a rebate.

It’s important to keep a record of the fuel you purchase and use so that you’re ready when it’s time to claim.  Keep a copy of your receipts and invoices and keep a note of how it is used and in what vehicle/machine.

Applications for a refund must be placed quarterly, and you have 3 months after the end of each quarter to submit otherwise there is a 10% late claims penalty.  If you are eligible, you can go back and make a claim for the past two years.

Ready to roll? Claim forms (MR70) are available from Waka Kotahi or can be downloaded here.

Once you’ve received your rebate, the refund is subject to GST and income tax.  Be sure to record the refund appropriately – either as taxable sundry income or credit it against the relevant expenses code. 

Have questions?  Get in contact or give us a call on Ph: 03 578 3386 – we can help.

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