Fuel tax credits

Written by Claude Haiku 4.5 from the extracted text on 10 Jul 2026. It can miss or misread redacted and scanned pages. Check the source before relying on it.

Treasury's fuel tax credits (FTC) forecasting model projects net FTC expenses declining from $10.5 billion (2024-25) to a low of $10.3 billion (2025-26) before rising to $13.1 billion by 2029-30. The model calculates eligible fuel volumes across diesel, petrol, fuel oil, and LPG, applying weighted-average credit rates that increase from $0.506-$0.165/litre (diesel-LPG respectively) in 2024-25 to $0.581-$0.189/litre by 2029-30. Diesel dominates costs at $12.0-$14.8 billion annually across the forecast period, with eligible use rates around 66%. Road user charges (RUC) offsets reduce gross FTC by approximately $2.4 billion yearly. The document assumes petrol and fuel oil growth of 2% annually, while LPG usage remains flat at 221 ML. The modelling underpins budget preparation for the 2026-27 fiscal year.