Regional Australians are finally seeing relief at the bowser thanks to brand-new fuel tax refunds that kick in just as diesel stations are posting prices as high as $2.45 per litre. The refund scheme rolled out in March 2025 and is becoming a crucial lifeline for anyone who travels far in remote areas. The scheme delivers money back to help offset the high travel costs in the bush.
Regional Drivers Now Eligible for Up to $280 Quarterly Savings
Under the new fuel tax refund program, the government is giving Aussies just outside the city a hand, and the refund amount changes by how far you are from the city centre. They base it on the Modified Monash Model (MMM), so by living in the farther tiers you get between 10-14 cents per litre back. A family out in the most distant MMO areas burning 2,000 litres in a three-month quarter could pocket up to $280 every three months.
That’s real help for bush families who often make the long drive just to see the doctor, for groceries, or for work. Rural motorists already burn 40% more petrol than city folk, so every bit of relief matters. Between rising prices and long trips, recouping that money is a way to keep the budget on the right side of balanced.
Eligibility Requirements and Benefits
To get the refund, you must:
- Be 18 or older
- Live in MMM zones 3 to 7
- Use a petrol or diesel vehicle for personal or job-related trips
- Keep receipts for fuel purchases
The refund is especially useful for farmers, Aboriginal and Torres Strait Islander communities, and other regional workers who drive long distances every day. People in cities don’t qualify, since the program is aimed at those in rural areas who face higher fuel costs.
Simple Application Process
Applying is straightforward and mostly paperless. Keep all fuel receipts and write down the odometer readings each time you fill up. You’ll file your claims every three months through the ATO online portal to receive your payment quickly.
The refund amount varies based on the MMM zone you live in:
- Zones 3-4: Up to $230 per quarter (10 cents per litre)
- Zone 5: Up to $270 per quarter (12 cents per litre)
- Zones 6-7: Up to $320 per quarter (14 cents per litre)
For many in regional areas, this untaxed refund shows that owning a car is a must, not a luxury. While the payment doesn’t fully close the fuel price gap with cities, it’s a solid acknowledgment that rural communities often lack reliable public transport and must bear higher travel costs.
Find out if you qualify today by using the postcode checker or by stopping by your nearest Service Australia centre. Each receipt you keep adds to a refund that could make a big difference in your household budget.