ATO Interpretative Decision
ATO ID 2009/114 (Withdrawn)
Excise
Excise: street sweeper with a GVM of less than 4.5 tonnes carrying out public road maintenanceFOI status: may be released
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This ATO ID is withdrawn as the issue is now covered by Fuel Tax Ruling FTR 2008/1, which issued on 9 April 2008.This document has changed over time. View its history.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is a street sweeper with a Gross Vehicle Mass (GVM) of less than 4.5 tonnes travelling on a public road for the purposes of section 41-20 of the Fuel Tax Act 2006 (FTA) while engaged in road maintenance being the sweeping and collecting debris from public roads?
Decision
No. A street sweeper with a GVM of less than 4.5 tonnes is not travelling on a public road for the purposes of section 41-20 of the FTA while engaged in road maintenance being the sweeping and collecting debris from public roads.
Facts
The entity acquires taxable fuel for use in carrying on its enterprise, including for use in a street sweeper with a GVM of less than 4.5 tonnes.
A street sweeper is designed to perform a number of functions from parking lot cleaning to road maintenance. The entity operates the street sweeper to conduct maintenance of public roads.
The street sweeper carries out road maintenance activities by using fitted brushes to sweep the public road and collect debris by vacuuming.
Reasons for Decision
Under section 41-5 of the FTA an entity is entitled to a fuel tax credit for taxable fuel that it acquires, manufactures, or imports into Australia to the extent that it does so for use in carrying on its enterprise.
Subdivision 41-B of the FTA provides a number of disentitlement rules for fuel tax credits.
One of the disentitlement provisions, in section 41-20 of the FTA, is that an entity is not entitled to a fuel tax credit for taxable fuel used in a vehicle with a GVM of 4.5 tonnes or less travelling on a public road. This rule is modified by item 12 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 which extends entitlement to diesel vehicles with a GVM of 4.5 tonnes provided they were acquired before 1 July 2006.
As the entity's road sweeper has a GVM less than 4.5 tonnes, it will be ineligible for a fuel tax credit while it is travelling on a public road.
The FTA does not define the term 'travelling'.
The terms 'travel' and 'travelling' were considered in Fuel Tax Ruling FTR 2008/1. The terms are defined in paragraph 14 of FTR 2008/1 as the going from one place to another place or moving from one point to another point.
FTR 2008/1 explains that the movement of a vehicle engaged in road construction, repair or maintenance to and from a road work site is 'travelling' for the purposes of the FTA. However, 'travelling' does not include the movement of a vehicle on a public road while the vehicle is engaged in construction, repair or maintenance of the road.
The Commissioner considers that the movement of a street sweeper whilst engaged in road maintenance (in this case, sweeping and vacuuming) is not 'travelling' on a public road.
Applying these principles, the street sweeper is considered to be 'travelling' when it leaves the depot or a waste disposal station up until the point when it commences maintenance activities on the road. Travel recommences when the street sweeper ceases sweeping and vacuuming the road and begins its return to the depot or a waste disposal station.
As 'travelling' does not extend to the movement of a vehicle engaged in maintenance on a public road, the street sweeper is not 'travelling' for the purposes of section 41-20 of the FTA while it is sweeping, vacuuming and collecting debris from public roads.
Date of decision: 2 October 2009
Legislative References:
Fuel Tax Act 2006
Subdivision 41-B
section 41-5
section 41-20
Schedule 3, Item 12
Related Public Rulings (including Determinations)
Fuel Tax Ruling FTR 2008/1
Keywords
Excise
Excise offsets
FTC public road
Fuel tax credits
ISSN: 1445 - 2782
| Date: | Version: | |
| 2 October 2009 | Original statement | |
| You are here | 17 January 2019 | Archived |