ATO Interpretative Decision

ATO ID 2004/880 (Withdrawn)

Excise

• This ATO ID is withdrawn as it has been superseded by Product Grants and Benefits Ruling PGBR 2005/3
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Is the catching of wild goats so they can be taken to an agricultural property, a 'sundry agricultural activity' as defined in section 27 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?

Decision

No. The catching of wild goats so they can be taken to an agricultural property is not a 'sundry agricultural activity' as defined in section 27 of the EGCSA.

Facts

An entity is an agricultural property owner.

As part of its business, the entity catches and removes goats from areas where they are considered to be pests. The entity does not muster or remove goats from agricultural properties.

The entity catches the goats by mustering them using sheep dogs and a motorcycle. The goats are herded onto a vehicle and transported to the entity's property where they are bred and sold to abattoirs.

Reasons for Decision

Section 53 of the EGCSA provides that subject to the conditions and restrictions specified in the regulations, an entity is entitled to an off-road credit if they purchase or import into Australia off-road diesel fuel for a use by them that qualifies, including 'agriculture'.

'Agriculture' is defined in section 22 of the EGCSA to include, subject to certain limitations, a 'sundry agricultural activity'.

Paragraph 27(i) of the EGCSA states, in part, that the expression 'sundry agricultural activity' means:

(i)

hunting or trapping that is carried on for the purposes of a business, including the storage of any carcasses or skins obtained from the hunting or trapping

The terms 'hunting' and 'trapping' are not defined in the EGCSA, and therefore their ordinary meaning must be considered. The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne defines 'hunting' as:

the practice of pursuing and killing wild animals, esp. for sport;

and 'trapping' as:

to catch (an animal) in a trap.

Consequently, 'trapping' refers to the setting and use of mechanical or other contrivances for the purposes of catching or killing game and other animals.

The entity musters the goats using sheep dogs and a motorcycle, and herds them onto a vehicle. These activities cannot be considered to be 'hunting', as the goats are not pursued and killed.

The entity's activities cannot be considered to be 'trapping' either as no mechanical or other contrivances for the purposes of catching or killing game and other animals, are used to catch the goats.

Accordingly, the catching of wild goats so they can be taken to an agricultural property is not a 'sundry agricultural activity' as defined in section 27 of the EGCSA.

Legislative References:
Energy Grants (Credits) Scheme Act 2003
   section 22
   paragraph 27(i)
   section 53

Other References:
The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne

Keywords
EGCS agriculture
EGCS sundry agricultural activity
EGCS trapping

Business Line:  Excise

Date of publication:  12 November 2004

ISSN: 1445-2782