• GST Primary Production Issues Register - Section 3 - Excise

    Issue Number

    Issue

    Updated

    1

    On Road Scheme

    1.1

    Contractors

    1.1.1

    Are contractors who provide transport for multiple primary producers eligible for the on-road scheme? If so, what are the requirements?

    15/06/01

    2

    Off Road Scheme

    20

    Sundry

    20.1

    Publications and Web Address

    20.1.1

    A list of all Excise Fuel Publications and the Excise website address?

    15/06/01

    20.2

    Record Keeping

    20.2.1

    What are the record keeping requirements for:
    (a) Diesel Fuel Rebate Scheme (off-road scheme); and
    (b) The Diesel and Alternative Fuels Grants Scheme (the on-road scheme).

    15/06/01

    1 On Road Scheme

    1.1 Contractors

    1.1.1 Eligibility of the On-Road Grants Scheme for Contractors for Multiple Primary Producers

    Question

    Are contractors who provide transport for multiple primary producers eligible for the on-road scheme? If so, what are the requirements?

    Answer

    See the fact sheet for The Diesel and Alternative Fuels Grants Scheme:Primary producers and the on-road scheme (NAT 8995) - Withdrawn.

    Please note at time of publication this fact sheet was currently being updated to provide further information on the eligibility of contractors on behalf of Primary Producers. The updated version will be available on the ATO Website shortly.

    2 Off road scheme

    20 Sundry

    20.1 Publications and web address

    20.1.1 A list of all excise fuel publications and the excise website address

    Excise web site

    If you would like more information on the off-road scheme or the on-road scheme, you can:

    • phone the Diesel Fuel Infoline on 1300 657 162
    • phone the TTY service on 1300 130 478 if you have a hearing or speech impairment; or
    • write to the following address for information on the schemes:

      Excise
      GPO Box 712G
      Hobart TAS 7001

    Taxpayers who do not speak English and need help from the ATO can phone the Translating and Interpreting Service (TIS) on 13 14 50.

    20.2 Record Keeping

    20.2.1 Record Keeping Requirements

    Questions:

    What are the record keeping requirements for:

    (a) Diesel Fuel Rebate Scheme (off-road scheme); and
    (b) The Diesel and Alternative Fuels Grants Scheme (the on-road scheme).

    Answer: See below.

    Explanation:

    The off-road scheme

    If you want to claim the off-road rebate for diesel or any like fuels, you must keep records of the fuel you purchase and use. You must retain those records for a period of five (5) years after the Australian Taxation Office (ATO) receives your off-road claim.

    The records that you need to substantiate your off-road claims need to show:

    • that you purchased the fuel;
    • that you used the fuel for activities that are eligible for the off-road rebate;
    • that the records show how you calculated the quantity of fuel claimed for;
    • whether the fuel was stored before use (and, if so, how and where it was stored);
    • whether the fuel was lost, sold or otherwise disposed of (with details of any of these events).

    Examples of records that you can keep to substantiate your claim include:

    • Business records of your activities eg. produce sales records; invoices; cartage notes; lease documents; farming contracts.
    • Fuel records eg. fuel invoices; delivery dockets; fuel issue sheets; bulk tank reconciliations; fuel storage records including details of the storage of fuel and address; details of fuel losses, sales or disposals etc.
    • Records of your equipment use eg. maintenance logs; hour meter readings; diaries; fuel issue records; stock cards; log books
    • Records of ineligible fuel use eg. log books; diaries etc

    Example - A family farm

    Paul and Grace run a family wheat and sheep farm.

    Their general sales and purchase records substantiate the nature of their business. However, they need to show that their claimed fuel usage is in proportion to the amount of work carried out on the farm. To do this, they keep a record of the number and type of diesel-powered machines and vehicles they used on their property. They use maintenance records to verify equipment usage. They have also established fuel consumption rates for their equipment.

    Paul and Grace occasionally use their vehicles on a public road (they cannot claim for this activity). When they do this, they note the journey details and kilometres in a log book or diary.

    When Paul and Grace claim their fuel purchases, they make an allowance for ineligible activities. Periodically, they should check their records of eligible and ineligible usage to ensure that they are claiming the correct proportion of fuel as eligible. They advise the ATO in writing where adjustments to their previous claims are necessary.

    End of example

    Pages 18-24 of the 'Guide for Claimants - Off Road- Diesel Fuel Rebate Scheme' (NAT 9001) - Withdrawn provides further information on the record keeping requirements of the off-road scheme.

    The on-road scheme

    The on-road scheme places responsibility on claimants to assess their own eligibility for the grant. You are only entitled to a fuel grant if you keep records that enable you to substantiate your claim and retain those records for five (5) years after you make the claim.

    In addition to any other records you may keep to substantiate your claim, you must keep records that enable you to substantiate:

    • Eligible kilometres - the number of eligible kilometres travelled by an eligible vehicle on a public road in the conduct of your enterprise in a particular on-road grant period.
    • Total kilometres - the total number of kilometres travelled by the eligible vehicle during the on-road grant period.
    • Total quantity of fuel - the number of litres (or cubic litres) of eligible fuel that you purchased and used in an eligible vehicle in a particular on-road grant period.

    You also need to show that:

    your vehicles are of the size and type you claimed for;
    you purchased the fuel; and
    you used the fuel for carrying on your enterprise, in an eligible vehicle and on an eligible trip.

    The types of standard records that would generally substantiate your entitlement to a claim include:

    • odometer readings or equivalent (which may determine total kilometres);
    • activity/accounting records (eg. consignment notes; cartage documents; freight manifests; trip sheets; contracts; delivery receipts; published bus timetables/tour itineraries etc) which may substantiate eligible kilometres and also the fact that you are carrying on an enterprise;
    • vehicle details to verify size (ie. the Gross Vehicle Mass) and of the type claimed for (eg. registration papers; lease or hire records; manufacturer's specifications);
    • fuel purchase records (eg invoices from suppliers) may substantiate total quantity of fuel together with verifying the type of fuel used in particular vehicles (fuel purchase documents; delivery dockets etc);
    • fuel reconciliation documents for bulk storage of fuel;
    • fuel issue records;
    • claim calculation worksheets or spreadsheets together with more specific documentation.

    Note

    This is not an exhaustive list.

    You would need to show that you purchased and used the fuel in carrying on your enterprise in an eligible vehicle and on an eligible trip.

    If you are a primary producer (or a contractor transporting goods on behalf of a primary production business) and you operate a vehicle for your primary production business, then only standard records, as suggested above will be required. The list of standard records above is not an exhaustive list.

    Pages 14 - 20 of the 'Information for Claimants - On Road - Diesel and Alternative Fuels Grants Scheme' (NAT 8995) - Withdrawn booklet provides further information on the record keeping requirements of the on-road scheme.

      Last modified: 07 Oct 2003QC 16513