ATO Interpretative Decision
ATO ID 2004/682 (Withdrawn)
Excise
EGCS: on-road credits - use of more than one fuel in a vehicleFOI 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This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 a client entitled to an on-road credit for both on-road diesel fuel and on-road alternative fuel when both fuels are used in the one vehicle, under section 42 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. A client is entitled to an on-road credit for both on-road diesel fuel and on-road alternative fuel when both fuels are used in the one vehicle, under section 42 of the EGCSA.
Facts
The client purchases on-road diesel fuel and on-road alternative fuel for use in activities that qualify for an on-road credit under section 42 of the EGCSA.
One vehicle has a modified diesel turbocharger that uses Liquefied Petroleum Gas (LPG) and air for combustion of the diesel fuel in the vehicle's engine. Another vehicle uses diesel to propel the vehicle and LPG to fuel the refrigeration unit attached to the vehicle.
Reasons for Decision
Under the Energy Grants Credits Scheme an entity is, subject to certain conditions, entitled to an energy grant if they are entitled to an on-road credit.
The client purchases on-road diesel fuel and on-road alternative fuel for use in activities that qualify for an on-road credit under section 42 of the EGCSA.
Subsection 57(3) of the EGCSA provides that where the regulations specify different rates of energy grant for different fuel types, a person's entitlement will equate to the sum of the amounts worked out for each type of fuel. Hence, the EGCSA envisages that some persons may be eligible for an energy grant in respect of more than one type of fuel.
The EGCSA does not provide for any special treatment where two or more fuels are used within the one vehicle.
Therefore, a client is entitled to an on-road credit for both on-road diesel fuel and on-road alternative fuel when both fuels are used in the one vehicle.
Date of decision: 9 August 2004
Legislative References:
Energy Grants (Credits) Scheme Act 2003
subsection 42(2)
section 56
subsection 57(3)
ATO ID 2004/98
Keywords
EGCS on-road
EGCS on-road diesel fuel
EGCS alternative fuel
ISSN: 1445-2782
| Date: | Version: | |
| 9 August 2004 | Original statement | |
| You are here | 1 July 2012 | Archived |