ATO Interpretative Decision

ATO ID 2002/635 (Withdrawn)

Excise

Excise - Payments - Diesel and Alternate Fuels Grants Scheme - use of more than one fuel in a vehicle
FOI status: may be released
Status of this decision: Decision Withdrawn 23 April 2010
CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Pursuant to section 11 of the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGS Act), in circumstances where more than one type of eligible fuel is used in an eligible vehicle, can a claimant be paid a grant for each type of fuel?

Decision

Under subsection 11(3) of the DAFGS Act, a separate fuel grant is payable for each type of eligible fuel used in a multi-fuel vehicle, provided the other grant conditions are met.

Facts

There are a number of situations where more than one type of fuel is used in a vehicle. For example:

•
vehicles with modified diesel turbo chargers use Liquefied Petroleum Gas (LPG) and air for combustion of the diesel;
•
diesel vehicles with refrigeration units that are fuelled by LPG.

Reasons for Decision

Subsection 11(3) of the DAFGS Act states:

'If you are entitled to a fuel grant in respect of the use, during a grant period, of more than one type of fuel in operating the vehicle in question, amounts of fuel grants for the grant period are worked out separately in respect of each of those types of fuel.'

Therefore, a taxpayer entitled to an on-road grant is entitled to a separate grant for each type of eligible fuel when more than one type of eligible fuel is used in a vehicle.

Presently the fuels which attract the grant are diesel, LPG, CNG and ethanol.

Date of decision:  19 February 2002

Legislative References:
Diesel and Alternative Fuels Grants Scheme Act 1999
   section 11

Keywords
Excise
Diesel & alternative fuels grants scheme
Fuel use

Business Line:  Excise

Date of publication:  6 June 2002

ISSN: 1445-2782

history
  Date: Version:
  19 February 2002 Original statement
You are here → 23 April 2010 Archived

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).