ATO Interpretative Decision
ATO ID 2006/12 (Withdrawn)
Excise
Energy Grants (Credits) Scheme: off-road - forestry - transplanting seedlings from a nursery within a forest or plantationFOI status: may be released
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This ATO ID is a simple restatement of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 7 October 2011
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 activity of transplanting seedlings within a forest or plantation, an eligible activity within the meaning of 'forestry' for the purposes of paragraph 35(a) of the Energy Grants (Credits) Scheme 2000 (EGCSA)?
Decision
Yes. The transplanting of seedlings in a forest or plantation is an eligible activity within the meaning of 'forestry' for the purposes of paragraph 35(a) of the EGCSA.
Facts
An entity operates a forest or plantation.
The entity has a nursery located in the forest or plantation which is managed by the entity.
New trees are propagated in the nursery.
Seedlings are transplanted from the nursery to the coupe in the forest or plantation.
Reasons for Decision
A person is entitled to an off-road credit if they purchase diesel fuel for use in the planting or tending, in a forest or plantation, of trees intended for felling. The activity must be carried out as part of a commercial undertaking to obtain timber as a primary produce.
Paragraph 35(a) of the EGCSA provides the meaning and core activity of 'forestry' as the planting or tending, in a forest or plantation, of trees intended for felling.
The activity of transplanting seedlings from a forest or plantation nursery to the forest coupe where they will grow to maturity, is an activity undertaken in the course of the 'planting or tending of trees.' This is an activity conducted and contained in the core forestry activity, and therefore is 'forestry' for the purposes of paragraph 35(a) of the EGCSA.
Consequently diesel fuel used to carry out the transplanting is eligible for the off-road grant.
Date of decision: 15 October 2005
Legislative References:
Energy Grants (Credits) Scheme Act 2003
paragraph 35(a)
Related Public Rulings (including Determinations)
Product Grant and Benefit Ruling PGBR 2005/1
ATO ID 2006/11
Keywords
EGCS forest
EGCS forestry
EGCS off-road
EGCS plantation
EGCS planting or tending
ISSN: 1445-2782
| Date: | Version: | |
| 15 October 2005 | Original statement | |
| You are here → | 7 October 2011 | Archived |