How telematics helps Australian fleets claim the Fuel Tax Credits they're missing

Somewhere in Australia right now, a massive diesel truck is sitting completely still on a construction site. The engine is running, fuel is being burned, and from the outside it looks like nothing more than an expensive machine doing very little.

But what if some of that fuel could actually be worth some money back to the business?

This is where Fuel Tax Credits play a critical role in your business.

You're already paying the tax

When a business buys diesel, part of what it pays at the pump is fuel excise. That excise is designed, among other things, to contribute to the cost of Australia's road network.

But not all fuel used by a business is used on public roads.

For example, a truck might spend the morning travelling between jobs, then spend several hours working on a private construction site. A concrete truck might be sitting at a site with its mixer running. Another vehicle could be idling while loading or unloading, or using fuel to power auxiliary equipment.

The fuel is still being burned, but the tax treatment can be different. That's where Fuel Tax Credits come in.

Eligible businesses can claim credits for fuel used in certain circumstances, including eligible off-road use and fuel used to power qualifying auxiliary equipment. Depending on how and where the fuel is used, the difference can be significant.

The catch: proving where the fuel went

Knowing you're entitled to a Fuel Tax Credit is one thing. Proving what actually happened is another.

Imagine running a fleet of 50 heavy vehicles. Every day, those trucks are travelling between depots, public roads, construction sites, quarries and customer locations. Some of that travel is on public roads, some isn't. Some fuel is being used while the vehicle is moving, some while it is idling, and some while it is powering auxiliary equipment.

Now try working out exactly how much fuel belongs in each category three months later. Or six months later. Or when you're looking back at historical claims.

That's where things get difficult.

You can't sit in the truck

Historically, this kind of calculation could involve driver records, spreadsheets, fuel receipts and plenty of assumptions. And you can understand why. The challenge is that the people responsible for the claim aren't sitting in the cab. They don't know exactly when a truck crossed the boundary between a public road and a private worksite, how long it spent idling, or when an auxiliary system was operating.

Asking a driver to remember all of that at the end of a long shift isn't exactly a recipe for perfect data either.

So, businesses can end up taking the conservative approach. They claim what they can confidently support and potentially leave money on the table.

What if the truck could tell you?

This is where telematics changes the equation.

With telematics, you know where the truck has been, when it moved, when the engine was running and how long it spent in a particular location. With the right data and configuration, that information can be used to distinguish between different types of vehicle activity.

At EROAD, we use GPS and vehicle activity data to help automate Fuel Tax Credit calculations. Geofences can identify activity in defined areas, while telematics data can capture idling and auxiliary equipment use. Fuel transaction data can then be reconciled against the activity recorded by the vehicle.

Instead of asking, "Where do we think this truck was?" you can start with a much better question:

"What does the vehicle data show?"

That's a very different conversation.

Backed by an ATO Class Ruling

This isn't simply a case of a telematics company saying, "Trust us, our data is good."

The Australian Taxation Office has issued Class Ruling CR 2026/69 for EROAD Australia. The ruling confirms that the Fuel Tax Credit (FTC) Report generated by EROAD using the Ehubo2 device can be used as a record for Fuel Tax Credit claim purposes.

There is an important distinction here. The ruling doesn't mean the ATO has automatically approved every customer's FTC calculation or determined that every claim is correct. Businesses still need to meet the relevant eligibility and record keeping requirements.

What it does mean is that an EROAD-generated FTC Report can form part of the records supporting an eligible business's Fuel Tax Credit claim.

The money can add up quickly

Pingelly Transport recovered $1,310 per vehicle

One of the best examples comes from Pingelly Transport.

After implementing EROAD's Fuel Tax Credit solution, Pingelly recovered $1,310 per vehicle in previously underclaimed Fuel Tax Credits.

One vehicle is one thing. Multiply that across a fleet and the numbers start getting interesting.

A fleet of 50 vehicles at that level would represent more than $65,000. That's more than enough for a great new light vehicle to join the fleet.

The key point here is that this is not a theoretical number created in a spreadsheet. It's based on a real EROAD customer finding Fuel Tax Credits they had previously underclaimed.

It's not just where the truck drives

Fuel used to power auxiliary equipment

This is another part of Fuel Tax Credits that can easily be overlooked.

The question isn't simply whether the truck was on or off the road. The ATO also recognises eligible fuel used to power auxiliary equipment on heavy vehicles.

Think about a concrete mixer, a garbage truck, a refrigeration unit, an elevated work platform or a truck with hydraulic equipment.

In many cases, that equipment is powered from the same fuel system as the vehicle itself. The ATO provides methods for apportioning the fuel used for auxiliary equipment, and qualifying auxiliary equipment fuel is not reduced by the road user charge.

That's where detailed vehicle data becomes even more valuable. The more you understand about what the vehicle is actually doing, the more accurately you can allocate the fuel.

What about the fuel card?

There's another important piece of the puzzle. Knowing where the vehicle went is useful. Knowing how much fuel it purchased is even better.

EROAD now integrates fuel transaction data from supported fuel cards, including WEX and Shell, into the FTC process. This allows fuel purchases to be reconciled against vehicle activity rather than relying on someone to manually move information between systems.

The result is a much clearer chain:

Fuel purchased → vehicle activity captured → fuel use matched → FTC report generated.

Less chasing. Less spreadsheet work. Less guesswork. Less manual data upload. Simply a much clearer audit trail.

The bigger opportunity in telematics

When it comes to Fuel Tax Credits, the challenge is rarely understanding that an entitlement may exist. The real challenge is having the records to accurately support a claim. That is where telematics can make a meaningful difference.

By combining GPS location, engine activity, idling, auxiliary equipment use and fuel transaction data, businesses can build a clearer picture of how fuel is actually being used across the fleet. That means less reliance on manual records, fewer assumptions and a stronger basis for identifying eligible Fuel Tax Credit opportunities.

For fleets operating across public roads, private sites and equipment-intensive jobs, that visibility can translate into more accurate claims, better records and less revenue left unclaimed. In that sense, a connected truck is doing more than moving freight or completing a job. It is generating the data needed to better understand fuel use and help recover value that might otherwise be missed.

So, what is your fleet leaving on the table? Get in touch and let's find out together.