Fuel excise reduction – cash flow relief, compliance complexity and mixed outcomes for fuel tax credit claimants

David P Sofra, Anthony Harmer, Nick Boland, Eli Christodoulou, and Simon Marial provide insights on the Federal Government’s recently announced fuel excise reduction and the implications for businesses claiming fuel tax credits.

Last week, the Federal Government announced significant changes to both the fuel excise rate and the road user charge, in response to the rise in global fuel prices.  These changes effect a 32 cent per litre (or 61 percent) reduction to the fuel excise rate during the period from 1 April 2026 to 30 June 2026. Whilst this delivers immediate cash flow relief at the bowser for both business and the public, continued uncertainty in global supply chains suggests this relief may be temporary...

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Authors: David Sofrà, Anthony Harmer,

Published Date: 08 April 2026