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ATO Interpretative Decision

ATO ID 2007/154 (Withdrawn)

Excise

Fuel Tax Credit: eligibility - grader with GVM greater than 4.5 tonnes
FOI status: may be released
  • This ATO ID is withdrawn as it is superseded by Fuel Tax Ruling FTR 2008/1 'Fuel tax: vehicle's travel on a public road that is incidental to the vehicle's main use and the road user charge.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 grader 'travelling on a public road' for the purposes of subitems 10(1)(b)(i) and 11(1)(b)(i) of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 (Fuel Tax Transitional Act) when it is carrying out grading activities on a public road?

Decision

No. A grader is not 'travelling on a public road' for the purposes of subitems 10(1)(b)(i) and 11(1)(b)(i) of Schedule 3 to the Fuel Tax Transitional Act when it is carrying out grading activities on a public road.

Facts

An entity conducts road maintenance on a public road using a grader with a gross vehicle mass greater than 4.5 tonnes.

The entity carries on an enterprise within the meaning of section 9-20 of the A New Tax System (Goods and Services Tax) Act 1999, and is registered for GST.

The grader is registered for use on a public road.

The grader pushes and spreads road material and undertakes grading of the road surface to ensure the surface is level.

Reasons for Decision

The Fuel Tax Transitional Act contains provisions for the phased implementation of the fuel tax credit system.

Subitem 10(1)(b)(i) of Schedule 3 to the Fuel Tax Transitional Act provides that an entitlement to a fuel tax credit arises under section 41-5 of the Fuel Tax Act 2006 for taxable fuel acquired, manufactured or imported into Australia between 1 July 2006 and 30 June 2008 'for use in a vehicle travelling on a public road'.

Similarly, under subitem 11(1)(b)(i) of Schedule 3 to the Fuel Tax Transiitional Act an entitlement to a fuel tax credit arises under section 41-5 of the Fuel Tax Act for taxable fuel acquired, manufactured or imported into Australia between 1 July 2008 and 30 June 2012 'for use in a vehicle travelling on a public road'.

As the word 'travelling' in subitems 10(1)(b)(i) and 11(1)(b)(i) is not defined in the Fuel Tax Transitional Act it takes its ordinary meaning. The definition of 'travel' in The Macquarie Dictionary, 2001 rev. 3rd edn The Macquarie Library Pty Ltd, NSW includes

1.
to go from one place to another; make a journey: to travel for pleasure.
2.
to move or go from one place or point to another.

Therefore the phrase 'travelling on a public road' means to make a journey on a public road.

In carrying out road construction and maintenance activities the grader is pushing and spreading road material in order to level the road's surface, that is, the grader is doing work on the public road. In the course of doing this work the grader moves along the road, however, this movement along the road does not constitute making a journey.

Therefore movement along a public road in the course of construction and maintenance activities does not constitute 'travelling on a public road' for the purposes of subitems 10(1)(b)(i) and 11(1)(b)(i) of the Fuel Tax Transitional Act.

Note: Where the grader travels on a public road to or from the road construction and maintenance site the vehicle is travelling on a public road for the purposes of subitems 10(1)(b)(i) and 11(1)(b)(i) of the Fuel Tax Transitional Act.

Date of decision:  9 July 2007

Legislative References:
Fuel Tax Act 2006
   subsection 41-5

Fuel Tax (Consequential and Transitional Provisions) Act 2006
   Schedule 3, Subitem 10(1)(b)(i)
   Schedule 3, Subitem 11(1)(b)(i)

Other References:
The Macquarie Dictionary, 2001 rev. 3rd edn The Macquarie Library Pty Ltd, NSW

Keywords
Excise
Excise offsets
Fuel tax credits
Bulldozers & graders
On-road business use
FCT Use in road construction

Business Line:  Excise

Date of publication:  13 July 2007

ISSN: 1445-2782

history
  Date: Version:
  9 July 2007 Original statement
You are here 15 January 2010 Archived

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