ATO Interpretative Decision
ATO ID 2003/1043
Excise
Energy Grants (Credits) Scheme: On-road credits- mobile libraryFOI status: may be released
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Status of this decision: Decision Current
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 mobile library with a Gross Vehicle Mass (GVM) of greater than 4.5 tonnes but less than 20 tonnes a 'vehicle for transporting passengers or goods' for the purposes of paragraph 43(1)(a) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. A mobile library with a GVM of greater than 4.5 tonnes but less than 20 tonnes is a 'vehicle for transporting passengers or goods' for the purposes of paragraph 43(1)(a) of the EGCSA.
Facts
The entity operates a mobile library service.
The vehicle used for the mobile library service is diesel powered and has a GVM of 10 tonnes.
The vehicle is a rigid truck that has been fitted out with library shelves on which a selection of books, audio cassettes, videos and CD Roms are stored.
The truck is designed in such a way that readers can readily enter the truck and find items of interest. Readers can also choose particular books from the library's catalogue which are transported out to them via the mobile library service.
Reasons for Decision
Subsection 43(1) of the EGCSA provides that a claimant is entitled to an on-road credit if they purchase diesel or on-road alternative fuel for use in a registered vehicle that has a GVM of 4.5 tonnes or more, but less than 20 tonnes. The circumstances under which a claimant will be eligible for an on-road credit in respect of fuel purchased for use in such a vehicle are set out in subsection 43(2) of the EGCSA.
A further, over-riding requirement that must be satisfied in order for any on-road credit to be available under section 43 is set out in paragraph 43(1)(a). Paragraph 43(1)(a) states that the vehicle must be a vehicle for transporting passengers or goods.
In determining whether a vehicle is a 'vehicle for transporting passengers or goods' as required by paragraph 43(1)(a) of the EGCSA, the Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999 should be considered, as the resultant Diesel and Alternative Fuels Grants Scheme Act 1999 contains similar terminology to that used in the EGCSA. When discussing the eligibility of 'vehicles for transporting passengers or goods', the Explanatory Memorandum refers to vehicles that are:
...designed for transporting passengers or goods...(emphasis added)
The Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003 and the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003 provides an example of a vehicle that is not for transporting goods or passengers.
Paragraph 2.8 of the Explanatory Memorandum states:
...If a vehicle is not for transporting goods or passengers (e.g. special purpose vehicles such as mobile cranes)...
Based on the two explanatory memoranda, the following tests are relevant in determining whether a particular vehicle is a 'vehicle for transporting goods or passengers':
- (a)
- Is the vehicle designed for the purpose of transporting goods or passengers?
- (b)
- Is the vehicle a special purpose vehicle?
The mobile library is designed for the purpose of transporting items such as reference materials, books, audio cassettes, videos and CD Roms. The items can be readily loaded or unloaded.
Section 4 of the EGCSA defines 'goods' as including a substance and a tangible thing. The books and other items carried by the vehicle are clearly goods.
Therefore, the mobile library is a vehicle designed for transporting goods. Although the vehicle is being used to convey a particular range of goods (being library items) and the layout of the truck (including shelving) allows the users to board the truck and readily find items of interest, this is not considered to amount to a special purpose. The fundamental purpose of the truck remains the transportation of goods from place to place.
Accordingly, a mobile library is a vehicle for transporting passengers and goods within the meaning of paragraph 43(1)(a) of the EGCSA.
Date of decision: 28 October 2003
Legislative References:
Energy Grants (Credits) Scheme Act 2003
section 4
subsection 43(2)
subsection 43(1)
paragraph 43(1)(a)
ATO ID 2003/884
Other References:
Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999
Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003 and the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003
Keywords
EGCS on-road
Energy grants (credits) scheme
Excise
Excise payments
Vehicle for transporting passengers or goods
ISSN: 1445-2782
| Date: | Version: | |
| You are here → | 28 October 2003 | Original statement |
| 1 July 2012 | Archived |