It’s no secret that petrol prices are getting sky-high, and this has a real knock-on effect for sole trader businesses. If you use petrol to run vehicles/tools/machines, the added costs are likely eating into your margins.
Which is why this is such good news: Certain sole traders may be eligible to claim petrol tax refunds. If you use petrol-powered tools, machinery, or equipment, or operate vehicles off public roads, these refunds may apply to you.
Let’s talk through who’s eligible, what you may be able to claim, and how to go about applying for a petrol refund.
💡 Petrol refunds are different from the recently announced government fuel relief package – for more information, and to see if you’re eligible, visit the IRD website.
Petrol refunds – the quick facts
In New Zealand, every litre of petrol includes a government road tax, known as fuel excise duty. This tax is intended to help fund the building and maintenance of public roads – but it’s still charged even if the petrol is intended for off-road activities.
That’s why, in some cases, you may be eligible for a refund of fuel excise duty.
If eligible, how much can you claim?
- Currently around 76 cents per litre +GST can be refunded on eligible fuel use
- Minimum thresholds apply to qualify (for example, using at least 10 litres per week off-road)
Why this matters right now
With fuel prices rising, this refund can make a meaningful difference – particularly for sole traders and tradies already using petrol across tools and equipment.
Unlike a tax deduction, this is:
- A direct cash refund
- Could be worth a significant amount, often $1,000 - $10,000+ (depending on usage)
- Something you can continue claiming on an ongoing basis
When can you claim petrol excise duty back?
If you use petrol off public roads – like in tools, machinery, equipment, or off-road vehicles – that portion of the tax may be refundable. Eligibility depends on both how the petrol is used and the type of vehicle or equipment it’s used in, not just whether it’s a business expense.
Some examples of eligible usage could include:
- Lawn mowers or ride-on mowers
- Chainsaws, generators, or water blasters
- Concrete cutters, compactors, or construction equipment
- Farm bikes, pumps, or agricultural machinery
- Landscaping or gardening equipment
These are examples of situations where refunds may apply, depending on how the fuel is used.
Note: Normal vehicle usage is excluded
Most sole traders use a car or ute for work – but petrol used for driving on public roads is not eligible for a refund.
This includes:
- Commuting
- Driving between jobs
- Any business travel on public roads
In some cases, vehicles may be eligible if:
- they’re used commercially off public roads, and
- they have a Class B registration, or are unregistered/deregistered.
Generally, vehicles with normal road registrations aren’t eligible for an excise duty refund, even when used exclusively on private land or farms.
💡 If you use your vehicle for work, you may still be able to raise on-road petrol usage as a business expense. For more information, check out ourguide to vehicle expenses.
How to claim a petrol tax refund
To claim a refund, you’ll need:
- Fuel receipts, or
- Fuel card invoices
You can also claim retrospectively for up to 2 years, as long as you have records—meaning you could receive a lump sum for past fuel use.
To make things easy, we’ve partnered with PR Claims, specialists in petrol excise refunds, to help eligible customers access this opportunity. They offer the lowest rates in New Zealand – now even lower through Hnry!
💡 Not sure if your vehicle is eligible for a petrol refund? Just ask PR Claims’ team of experts – they’re happy to help!
It only takes 10 minutes or less to register, and their fees are 100% tax deductible. They provide:
- Eligibility assessment and calculations
- A simple, done-for-you claims process
- Support with both new and backdated claims
Key benefits for claiming through PR Claims include:
- Direct cash refunds (this is not a tax deduction!)
- Backdated lump sum opportunity (up to 2 years)
- Ongoing savings once set up
- Proven results, with hundreds of thousands of dollars reclaimed for NZ businesses
- Competitive pricing at 15% + GST
- An additional 2.5% discount for Hnry customers, increasing your net return
Speaking of which –
How this works with Hnry
If you’re a Hnry customer:
- This refund is separate from your normal expense claims
- Claiming it does not count as double-dipping
- You can continue recording your fuel expenses in Hnry as usual
Because this sits outside of Hnry’s usual tax services, we recommend working with a specialist (like PR Claims!) to assess eligibility and handle the claiming process.
Hi! We’re Hnry
We’re an award-winning tax app and service designed specifically for sole traders.
For just 1% + GST of your self-employed income, capped at $1,500+GST a year, Hnry will calculate and pay all your taxes, levies and whatnot for you, including:
- Income tax
- GST (if applicable)
- ACC levies
- Student loan repayments
- KiwiSaver contributions (optional)
You can also use our app to do things like:
- Send unlimited invoices
- Send unlimited quotes
- Raise expenses (which we then manage for you)
- … and so much more!
Basically, we make it so you never have to think about tax again. If this sounds good to you, why not give it a whirl?
Join Hnry today.