ATO Interpretative Decision
ATO ID 2004/952 (Withdrawn)
Excise
Energy Grants (Credits) Scheme: off-road credit - agriculture - loading of pallets of turf onto trucks for transportFOI status: may be released
-
This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.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.
Status of this decision: Decision Withdrawn 1 July 2012
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 loading of pallets of harvested turf onto trucks to be transported from a farm 'horticulture' as defined in section 33 of the Energy Grants Credits Scheme Act 2003 (EGCSA)?
Decision
No. The loading of pallets of harvested turf onto trucks to be transported from a farm is not 'horticulture' as defined in section 33 of the EGCSA.
Facts
An entity operates a business producing turf, which involves the cultivation, production and harvesting of turf grass.
The turf is harvested and then loaded onto pallets. The pallets are then left in a central collection point where they are loaded onto trucks for transport from the farm.
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'.
The definition of 'agriculture' in subsection 22(1) of the EGCSA states in part:
Subject to subsection (2), the expression
agriculture
means:
Section 33 of the EGCSA defines 'horticulture' as including:
- (a)
- the cultivation or gathering in of fruit, vegetables, herbs, edible fungi, nuts, flowers, trees, shrubs or plants; or
- (b)
- the propagation of trees, shrubs or plants; or
- (c)
- the production of seeds, bulbs, corms, tubers or rhizomes.
The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne, defines the term 'horticulture' as being 'the art of garden cultivation'. The Macquarie Dictionary, 2001, rev. 3rd edn, The Macquarie University, NSW, defines 'horticulture' as:
- 1.
- commercial cultivation of fruit, vegetables, and flowers, including berries, grapes, vines and nuts.
- 2.
- the science or art of growing fruit, vegetables, and flowers or ornamental plants.
- 3.
- the cultivation of a garden.
Therefore, the definition of horticulture in section 33 of the EGCSA takes the ordinary meaning of the term and expands that ordinary meaning by including activities in 'gathering in' of horticultural produce.
The term 'gathering in' was considered in the case Vicmint Partners Pty Ltd v. Chief Executive Officer of Customs (1997) 48 ALD 475. Deputy President Dr. Gerber stated:
It seems generically that 'gathering in' consists of: the process of plucking plants from the ground, or fruit or other produce from the plant, some initial processing in the immediate vicinity of the place where the plant was, or is, in the ground; and collecting such roughly processed items together in the same place, either on or off the property on which it was growing. In the instant case 'gathering in' is the mowing and windrowing of the peppermint leaves and stalks, the chopping and immediate loading of the leaves and stalks into the mobile tubs, and transporting the leaves and stalks to the site of the steam distillation equipment.
In this case, the turf is harvested and loaded onto pallets. The pallets are left in a central collection point where they are then loaded onto trucks for transport from the farm.
Therefore the first point where the turf is collected together is when the pallets are placed in the central collection point. Consequently, the loading of pallets of turf onto trucks for their transport from the farm is an activity which occurs after the turf has been 'gathered in'.
Accordingly, the loading of pallets of harvested turf onto trucks to be transported from a farm is not 'horticulture' as defined in section 33 of the EGCSA.
Date of decision: 24 November 2004
Legislative References:
Energy Grants (Credits) Scheme Act 2003
subsection 22(1)
paragraph 22(1)(d)
section 33
section 53
Case References:
Vicmint Partners Pty Ltd v. Chief Executive Officer of Customs
(1997) 48 ALD 475
Related Public Rulings (including Determinations)
Draft Product Grant and Benefit Ruling 2004/D3 - Energy Grants: Off-Road credits for agriculture
ATO ID 2004/951
Other References:
The Macquarie Dictionary, 2001, rev. 3rd edn, The Macquarie University, NSW
The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne
Keywords
EGCS agriculture
EGCS horticulture
ISSN: 1445-2782
| Date: | Version: | |
| 24 November 2004 | Original statement | |
| You are here → | 1 July 2012 | Archived |