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ATO Interpretative Decision

ATO ID 2006/50 (Withdrawn)

Excise

Energy Grants (Credits) Scheme: off-road - diesel used as a saw lubricant
FOI status: may be released
  • This ATO ID is a simple statement restatement of the law and does not contain an interpretative decision.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Status of this decision: Decision Withdrawn 30 April 2010
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 the use of off-road diesel as a saw lubricant a qualifying use for an off-road credit under section 53 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?

Decision

Yes. The use of off-road diesel as a saw lubricant is a qualifying use and is eligible for an off-road credit under section 53 of the EGCSA.

Facts

Diesel is used as a saw lubricant in thinning, felling, milling or processing of forest timber.

Thinning or felling is carried out in a forest or plantation.

Milling or processing is carried out in facilities situated in a forest or plantation.

Milling is also carried out at sawmills and chipmills not situated in a forest or plantation.

Reasons for Decision

Subsection 53(1) of the EGCSA states that you are entitled to an off-road credit if you purchase diesel fuel for a use by you that qualifies.

The Explanatory Statement to the Energy Grants (Credits) Scheme Amendment Regulations 2003 (No. 2) 2003 No. 371 relevantly provides;

Paragraph 53(6)(b) of the Act provides that the regulations may specify various uses of off-road diesel fuel, other than those specifically provided for in section 53 of the Act, that qualify for an off-road credit.

Regulation 10 of the Energy Grants (Credits) Scheme Regulations 2003 (the Regulations) relevantly states that, for paragraph 53(6)(b) of the EGCSA, 'the use of off-road diesel fuel other than as a fuel is specified'.

The use of off-road diesel fuel as a saw lubricant falls within the ambit of Regulation 10, and this consequently gives rise to an entitlement to an off-road credit.

Date of decision:  30 November 2005

Legislative References:
Energy Grants (Credits) Scheme Act 2003
   paragraph 53(1)
   paragraph 53(6)(b)

Energy Grants (Credits) Scheme Regulations 2003
   Regulation 10

Related Public Rulings (including Determinations)
Product Grants and Benefits Ruling PGBR 2005/1

Keywords
EGCS forestry
EGCS milling
EGCS off-road
EGCS off-road diesel
EGCS processing
EGCS thinning or felling
Energy grants (credits) scheme
Not for use in an internal combustion engine

Business Line:  Excise

Date of publication:  24 February 2006

ISSN: 1445-2782

history
  Date: Version:
  30 November 2005 Original statement
You are here → 30 April 2010 Archived

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