• Attention

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Vehicles that would have been eligible under the energy grants credits scheme

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Certain heavy vehicles that are not used for travelling on a public road are eligible because:

    • they would have been eligible to an on-road credit under the energy grants credits scheme before the introduction of fuel tax credits
    • the above eligibility carried over to fuel tax credits.

    If these vehicles operate outside metropolitan areas or across metropolitan/non-metropolitan boundaries, they are eligible for 38.143 cents per litre minus the road user charge for all the fuel used in the vehicle (other than for gaseous fuels). If fuel is used in other movement or on the public road within the metropolitan area, for example road cleaning, you may be entitled to fuel tax credits at the half rate.

    Duty paid gaseous fuels used in heavy vehicles for the above activities are eligible for fuel tax credits from 1 December 2011. However, the road user charge currently reduces any fuel tax credit entitlement to nil for these fuels.

    Heavy vehicles are registered vehicles that meet all of the following requirements:

    • have a GVM of 4.5 tonne or more but less than 20 tonne
    • are undertaking an 'eligible trip' or journey on a road.

    They include water trucks for dust suppression and street sweepers with a GVM of greater than 4.5 tonne.

    An eligible trip or journey includes:

    • a trip starting outside a metropolitan area to a point inside it and vice versa
    • trips solely outside a metropolitan area
    • trips between different metropolitan areas.

    If these vehicles operate only within a metropolitan area, you can claim the fuel tax credit rate for the fuel minus the road user charge for the travel component. For all other activities, such as road maintenance, you can claim:

    • 2.5 cents per litre for duty paid LPG acquired from 1 December 2011
    • 5.22 cents per kilogram for duty paid LNG and CNG acquired from 1 December 2011
    • 19.0715 cents per litre for all other taxable fuels acquired from 1 July 2008.

    Metropolitan boundaries did not apply under the energy grants credits scheme for vehicles with a GVM of 20 tonne or more.

    You cannot claim fuel tax credits for some alternative fuels, such as ethanol or biodiesel that have already received another grant or subsidy. Only taxable fuels are eligible for fuel tax credits.

    Certain eligibility for fuel tax credits are derived from criteria under the energy grants credits scheme.

    See also:

    Example 5: Street sweeper operating outside a metropolitan area

    This example shows how the fuel tax credit rate applies to travel and movement outside a metropolitan area for heavy vehicles transporting passengers or goods.

    A council uses a diesel-powered street sweeper with a GVM of 14 tonne to clean and vacuum public roads. The street sweeper uses 62,500 litres of diesel in August 2011 travelling from its depot along a public road to the area of the road requiring cleaning. During the cleaning process it moves along the road collecting goods, such as rubbish and other waste matter.

    The street sweeper's travel and road cleaning activity occurs in the Rockhampton and Yeppoon area of Central Queensland (non-metropolitan).

    The street sweeper is:

    • less than 20 tonne (but more than 4.5 tonne)
    • operating outside a metropolitan area

    Because the street sweeper would have been eligible for an energy grant under the energy grants credits scheme, the council can claim fuel tax credits of 38.143 cents per litre minus the road user charge for the street sweeper's travel and for cleaning the non-metropolitan roads.

    The fuel tax credit entitlement is calculated as follows:

    • Step 1: $0.38143 − $0.231 (the road user charge) = $0.15043
    • Step 2: 62,500 litres × $0.15043 = $9,401.88

    Example 6: Street sweeper operating only within a metropolitan area

    This example shows how the fuel tax credit rate applies to heavy vehicle maintaining a public road in the metropolitan area.

    A council's diesel-powered street sweeper (identical to the one in example 5) is used solely within the Perth metropolitan area during September 2011.

    Like the street sweeper in example 5, it is used to clean and vacuum public roads and travels along a public road from its depot to the parts of the road requiring cleaning.

    Unlike the vehicle in example 5, different fuel tax credit rates apply to travel and to the road cleaning process. As it operates only within a metropolitan area, the council can claim:

    • 38.143 cents per litre minus the road user charge for the street sweeper's travel (when the brushes are up) – that is, when travelling along a public road from the depot to the point where the road will be cleaned and the return journey
    • 19.0715 cents per litre (from 1 July 2008) for diesel acquired and used in the vehicle when undertaking maintenance while cleaning the road (when the brushes are down).

    Records need to be kept for the amount of diesel used for each part of the journey. In this example, 22,500 litres were used when the street sweeper travelled from the depot to the part of the road requiring cleaning (brushes up) and 62,000 litres for cleaning the road (brushes down).

    The fuel tax credit entitlement is calculated as follows

    • Step 1: $0.38143 − $0.231 (the road user charge) = $0.15043
    • Step 2: 22,500 litres × $0.15043 = $3,384.68
    • Step 3: 62,000 litres × $0.190715 = $11,824.33
    • Step 4: $3,384.68 + $11,824.33 = $15,209.01
    End of example

     

    Example 7: Street sweeper operating inside and outside a metropolitan area This example shows how the fuel tax credit rate applies to travel and movement inside and outside a metropolitan area for heavy vehicles.

    During September 2011, a council uses a diesel-powered street sweeper with a GVM of 10 tonne to clean and vacuum public roads. The street sweeper travels from its depot, located in a metropolitan area, along a public road to the area of the road requiring cleaning, which is outside the metropolitan area. During the cleaning process it moves along the road collecting goods, such as rubbish and other waste matter.

    The street sweeper's travel and road cleaning activity occurs in the non-metropolitan area.

    The street sweeper is:

    • less than 20 tonne (but more than 4.5 tonne)
    • operating inside and outside a metropolitan area on an eligible journey

    Therefore, because the street sweeper would have been eligible under the energy grants credits scheme, the council can claim fuel tax credits of 38.143 cents per litre minus the road user charge for the 62,500 litres of diesel used in the street sweeper's travel and for cleaning the non-metropolitan roads.

    The fuel tax credit entitlement is calculated as follows:

    • Step 1: $0.38143 − $0.231 (the road user charge) = $0.15043
    • Step 2: 62,500 litres × $0.15043 = $9,401.88
    End of example

    If your street sweeper is 4.5 tonne or less, it is not eligible for fuel tax credits for travel on the road. However, for fuel used while it is cleaning (brushes down), you can claim:

    • 2.5 cents per litre for duty paid LPG acquired from 1 December 2011
    • 5.22 cents per kilogram for duty paid LNG and CNG acquired from 1 December 2011
    • 19.0715 cents per litre for all other taxable fuels from 1 July 2008.

    See also:

      Last modified: 18 Mar 2014QC 26573