Excise Bulletin

EB 2001/1

Diesel and Alternative Fuels Grants Scheme - Fuel Used by Refrigerated Trailers

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Date of Issue: 11 April 2001

Contents

• • About this Bulletin

• • What are refrigerated trailers?

• • Requirement to use fuel in a vehicle

• • Can a refrigerated trailer be a vehicle that has a gross vehicle mass of at least 4.5 tonnes for the On-Road Scheme?

• • How do I calculate the claim for my refrigerated trailer?

• • What records need to be kept in order to substantiate claims for fuel used in refrigerated trailers?

• • From what date can claims for fuel used in refrigerated trailers be made?

• • How can I get more information?

About this Bulletin

The Diesel and Alternative Fuels Grants Scheme Act 1999 (the Act) allows certain road transport operators to claim fuel grants to assist with the cost of diesel and specified alternative fuel which they purchase and use in carrying on their enterprise in operating eligible vehicles on public roads in Australia.

This Bulletin explains how the Diesel and Alternative Fuels Grants Scheme (the on-road scheme) applies to fuel used in operating refrigerated trailers.

What are refrigerated trailers?

By 'refrigerated trailers' we mean semi-trailers that are registered for use on a public road in Australia and which use diesel or one of the specified alternative fuels to power a refrigeration unit attached to the trailer. That is, the power for the refrigeration unit is supplied by a separately fuelled power unit and is not drawn from the prime mover. Consequently, the refrigerated trailer is capable of operating at times when it is not attached to a prime mover, or when the prime mover motor is not operating.

Requirement to use fuel in a vehicle

To be entitled to a fuel grant under the on-road scheme, you must, amongst other things, purchase the diesel or specified alternative fuel and use it in operating a 'vehicle' on a public road in the course of your enterprise.

The vehicle must be registered for use on a public road and have a gross vehicle mass (GVM) of at least 4.5 tonnes. If the vehicle has a GVM of at least 4.5 tonnes and less than 20 tonnes, it must also be a vehicle for transporting passengers or goods.

Can a refrigerated trailer be a vehicle that has a gross vehicle mass of at least 4.5 tonnes for the On-Road Scheme?

Yes. First, a refrigerated trailer is within the ordinary meaning of the word 'vehicle' as a means of transport in which something is conveyed or carried. Even though they are not self-propelled, they do have separate motors and separate fuel tanks for their chilling units and the Act does not restrict eligible fuel to that used in motor vehicles only.

Secondly, as a refrigerated trailer is not a 'prime mover' for the purposes of the Interstate Road Transport Regulations 1986 (not being a rigid motor vehicle designed to haul a semi-trailer), it is a vehicle that has a GVM of at least 4.5 tonnes if it has a maximum laden mass specified by its manufacturer of at least 4.5 tonnes. Excise Bulletin EB 2000/2 provides a further discussion of the GVM of vehicles which are not prime movers. Mass limits vary according to the type of axles and the axle spacing.

Thirdly, refrigerated trailers are required to be registered for use on public roads separately from the prime mover that pulls them.

Therefore, as long as a refrigerated trailer:

• a) has a GVM of 4.5 tonnes or more;

• b) is registered for use on public roads; and

• c) uses diesel or one of the specified alternative fuels (compressed natural gas, liquefied petroleum gas, recycled waste oil, ethanol or canola oil)

it is considered to be an eligible vehicle for the purposes of the on-road Scheme.

However, claimants will still need to meet all other requirements of the scheme to claim an on-road fuel grant (this includes being able to substantiate their claim).

How do I calculate the claim for my refrigerated trailer?

As refrigerated trailers are being treated as vehicles in their own right, the same criteria will apply to them as those that apply to self-propelled vehicles. The On-Road - Information for Claimants booklet outlines these requirements. However, this Bulletin explains how to calculate your claim, with particular reference to refrigerated trailers.

In order to calculate your entitlement to an on-road fuel grant you will need to be able to complete the following formula:

Eligible litres = ((Total fuel * eligible kilometres) / total kilometres)


Where:

'Total Fuel' means the number of litres of the particular type of fuel used by the refrigerated trailer in a grant period, unless 20% or more of the fuel used by the refrigerated trailer during a grant period was used while the vehicle was stationary. If, in any grant period, the refrigerated trailer uses 20% or more of its fuel while stationary, all fuel used while stationary must be deducted from your claim.

'Total kilometres' means the total number of kilometres travelled by the refrigerated trailer in a grant period.

'Eligible kilometres' means the number of kilometres travelled by the vehicle in eligible circumstances in a grant period. If your refrigerated trailer has:

• • a) a GVM of 20 tonnes or more; or

• • b) a GVM of at least 4.5 tonnes but less than 20 tonnes and either operates entirely outside the defined metropolitan areas or is transporting goods solely on behalf of one or more primary production businesses

your eligible kilometres will generally be all kilometres travelled on a public road as part of your enterprise.

However, if your refrigerated trailer has a GVM of at least 4.5 tonnes, but less than 20 tonnes and does not operate as described in 'b' above, you will only be able to claim for those kilometres that were part of an eligible trip. For these vehicles, trips undertaken wholly within a metropolitan area are generally not eligible trips. More information on eligible trips can be obtained from the Eligible Trips for the On-Road Scheme Fact Sheet.

As refrigerated trailers do not self-propel, they can only travel on the road when they are being pulled by a prime mover. Therefore, odometer readings taken from the towing vehicle may be used to calculate the relevant distances travelled by the trailers. Other acceptable methods of determining eligible and total kilometres would be to use sign-posted or published road distances or, in the case of refrigerated trailers of at least 4.5 tonnes but less than 20 tonnes, the 'deeming method' could be used for eligible journeys that cross metropolitan boundaries.

What records need to be kept in order to substantiate claims for fuel used in refrigerated trailers?

In treating refrigerated trailers as vehicles in their own right, the same criteria will apply to them as those that apply to self-propelled vehicles. You will need to keep records that allow you to calculate and substantiate your claim. The On-Road - Information for Claimants booklet contains more information on record keeping.

Where the entity that purchases the fuel in a refrigerated trailer and uses it in the conduct of their enterprise is not the same entity that purchases and uses the fuel in the prime mover, it is recognised that the record keeping provisions could be complex. Consideration is being given to the issue of a formal determination that offers an alternative simplified record keeping method for clients in this situation.

From what date can claims for fuel used in refrigerated trailers be made?

Claims may be made for any eligible fuel used in a refrigerated trailer from 1 July 2000. Where an entity has already submitted claims for the relevant claim periods from 1 July, which excluded eligible fuel used in refrigerated trailers, those claims can be amended. It is important to note that claims for fuel used in refrigerated trailers can only be made where the necessary records to substantiate the claim have been kept.

If you would like to amend a claim, you will need to request an amended assessment in writing.

How can I get more information?

If you have any questions or need more help, contact the Diesel Fuel Infoline on 1300 657 162.

Commissioner of Taxation
11 April 2001

ATO references:
NO 2000/010839