ATO Interpretative Decision
ATO ID 2005/326 (Withdrawn)
Excise
Energy Grants (Credits) Scheme: on - road credits - is a forklift a vehicle for transporting passengers or goods?FOI 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This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 forklift with a gross vehicle mass (GVM) of between 4.5 tonnes and 20 tonnes, a 'vehicle for transporting passengers or goods' for the purposes of subsection 43(1) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
No. A forklift with a gross vehicle mass (GVM) of between 4.5 and 20 tonnes is not a 'vehicle for transporting passengers or goods' for the purposes of subsection 43(1) of the EGCSA.
Facts
A client operates a road transport business that uses a forklift to load and unload their trucks at their depot and at delivery points.
The forklift is registered for use on public roads and its GVM is between 4.5 and 20 tonnes.
The forklift is designed to carry out special purpose work, such as the lifting and carrying of goods for short distances.
Reasons for Decision
Subsection 43(1) of the EGCSA specifies the general circumstances when a client will be entitled to an on-road credit for diesel fuel or alternative fuel purchased for use in a registered vehicle that has a GVM of 4.5 tonnes or more, but less than 20 tonnes. It provides that the relevant vehicle must be a 'vehicle for transporting passengers or goods.'
In determining whether a vehicle is a 'vehicle for transporting passengers or goods', the Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999 should be considered, as it contains the same terminology that appears in the EGCS Act. When discussing the eligibility of 'vehicles for transporting passengers or goods', the Explanatory Memorandum refers to vehicles that are:
...designed for transporting passengers or goods... (emphasis added).
The Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003 and the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003 provides an example of a vehicle that is not for transporting goods or passengers:
Paragraph 2.8 of the Explanatory Memorandum states:
...If a vehicle is not for transporting goods or passengers (e.g. special purpose vehicles such as mobile cranes)...
Consequently the following factors are relevant in determining whether a vehicle is a vehicle for transporting passengers or goods if:
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- is it designed for the purpose of transporting goods or passengers?
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- is it more properly regarded as a special purpose vehicle?
A forklift is not specifically designed to transport passengers or goods, and is not suitable for this purpose. Rather, the forklift is designed to carry out special purpose work, being forklift operations work. Accordingly, the forklift is not a 'vehicle for transporting passengers or goods', but more properly regarded as a special purpose vehicle.
Date of decision: 14 November 2005
Legislative References:
Energy Grants (Credits) Scheme Act 2003
subsection 43(1)
ATO ID 2003/884
Other References:
Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999
The Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003 and the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003
Keywords
Energy grants (credits) scheme
EGCS on-road
Vehicle for transporting passengers or goods
ISSN: 1445-2782
| Date: | Version: | |
| 14 November 2005 | Original statement | |
| You are here | 1 July 2012 | Archived |