ATO Interpretative Decision
ATO ID 2002/978
Excise
Excise - Payments - Diesel Fuel Rebate Scheme - rail and marine refrigerated containersFOI status: may be released
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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 an off-road rebate payable under paragraphs 78A(1)(ab) or (ac) of the Excise Act 1901 (Excise Act) for diesel fuel used in refrigerated containers travelling by rail or on vessels?
Decision
Yes, an off-road rebate is payable under paragraphs 78A(1)(ab) or (ac) of the Excise Act for diesel fuel used in refrigerated containers travelling by rail or on vessels.
Facts
An entity owns and operates refrigerated containers that are transported either by trains between two Australian States or directly via ship between two Australian ports, as part of the entity's enterprise. The refrigeration mechanisms on the containers run on diesel fuel. The refrigerated containers are not involved in any transport relating to forestry.
Reasons for Decision
Subsection 78A(1) of the Excise Act says:
'A rebate is,... payable to a person who purchases diesel fuel for use by him or her: ...
Subsection 78A(7) of the Excise Act states that 'rail transport' and 'marine transport' have the same meanings as in subsection 164(7) of the Customs Act 1901 (Customs Act). Subsection 164(7) of the Customs Act states:
'Marine transport includes transport by vessel in or on fresh water, but does not include any transport relating to forestry.
.....
Rail transport includes light rail transport and transport by tram, but does not include any transport relating to forestry.'
As the terms rail transport and marine transport are not exhaustively defined in the legislation, the terms should be given their ordinary meanings as modified by the definitions in subsection 164(7) of the Customs Act. Paragraphs 78A(1)(ab) and (ac) of the Excise Act refer to use 'in rail transport' and 'in marine transport'. Both of these paragraphs connote active involvement in transport which is relevantly defined in the Macquarie Dictionary (3rd Ed) as the 'act or method of transporting or conveying'.
Diesel fuel purchased for use in refrigerated containers travelling by rail or on vessels is considered to be within the ordinary meaning of the terms rail and marine transport. Therefore, a rebate is payable from the time a refrigerated container arrives at the departure point to the time the container leaves the destination point. For rail, departure and destination points include railways, tramways, light rail networks, rail or tram freight terminals, storage depots and similar rail transport facilities or infrastructures. For marine, departure and destination points include waterways, ports, docks, marine freight terminals, marinas or similar marine transport facilities or infrastructures.
Date of decision: 19 September 2002
Legislative References:
Excise Act 1901
subsection 78A(1)
subsection 78A(7)
subsection 164(7)
Keywords
DFRS marine
DFRS rail
Diesel fuel rebate scheme
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 19 September 2002 | Original statement |
| 6 August 2003 | Archived |