ATO Interpretative Decision
ATO ID 2005/222 (Withdrawn)
Excise
Energy Grants (Credits) Scheme - Off-road credit - Mining transport activityFOI status: may be released
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This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.
Despite its withdrawal, this ATO ID continues to be a precedential ATO view in respect of the period the Act was in force, 1 July 2003 up to and including 30 June 2012.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 movement of ore from a storage facility to a hopper, so that the hopper can feed a conveyer belt that carries the ore to a beneficiation site, a 'mining transport activity' as defined in paragraph 12(a) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. The movement of ore from a storage facility to a hopper, so that the hopper can feed a conveyer belt that carries the ore to a beneficiation site, is a 'mining transport activity' as defined in paragraph 12(a) of the EGCSA.
Facts
A mineral ore is mined, crushed and stockpiled at a mine site.
From the stockpile at the mine site, the ore is transported to a storage facility.
The ore stockpiled at the storage facility is moved by front end loaders into a hopper which feeds the ore onto a conveyer belt.
The ore from the hopper travels via the conveyer belt to a beneficiation site.
The ore is beneficiated at the beneficiation site.
Reasons for Decision
Section 53 of the EGCSA provides that you are entitled to an off-road credit if you purchase diesel fuel for a use by you that qualifies. Use 'in mining operations' is a use that qualifies.
'Mining operations' is relevantly defined in subsection 11(1) of the EGCSA as:
...
When mineral ores are beneficiated at a place other than the mining site, paragraph 12(a) of the EGCSA relevantly defines a 'mining transport activity' as meaning the journey undertaken for the purpose of transporting the mineral ores from the mining site to the place of beneficiation.
In this instance, the use of a front end loader at the storage facility to place the ore into the hopper for the next stage of the journey to the beneficiation site is an integral part of the journey from the mine site to the place of beneficiation.
Accordingly, the movement of the ore from a storage facility to a hopper, so that the hopper can feed a conveyer belt that carries the ore to a beneficiation site, is a 'mining transport activity' as defined in paragraph 12(a) of the EGCSA.
Date of decision: 21 July 2005
Legislative References:
Energy Grants (Credits) Scheme Act 2003
Section 53
Paragraph 12(a)
Section 11
Subsection 11(1)
Related Public Rulings (including Determinations)
Product Grant and Benefit Ruling PGBR 2003/3
Keywords
EGCS mining operation
EGCS mining transport activity
EGCS off-road
Energy grants (credits) scheme
ISSN: 1445-2782
| Date: | Version: | |
| 21 July 2005 | Original statement | |
| You are here | 1 July 2012 | Archived |