ATO Interpretative Decision

ATO ID 2003/1164

Excise

Energy Grants (Credits) Scheme: on-road alternative fuel
FOI status: may be released

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Status of this decision: Decision Current

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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 vegetable oil emulsion consisting of vegetable oil blended with diesel fuel and ethanol an 'on-road alternative fuel' as defined in section 4 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?

Decision

No. A vegetable oil emulsion consisting of vegetable oil blended with diesel fuel and ethanol is not an 'on-road alternative fuel' as defined in section 4 of the EGCSA.

Facts

An entity manufactures two fuels. Each fuel consists of a blend of vegetable oil, diesel fuel and ethanol.

The proportions of each part of the blend vary.

Reasons for Decision

Section 4 of the EGCSA defines 'on-road alternative fuel' as:

'(a)
compressed natural gas; or

(b)
liquefied petroleum gas; or

(c)
ethanol; or

(d)
such other fuel as specified in the Regulations;

but, to avoid doubt, does not include a blend of anything in any other paragraph of this definition with anything in any other paragraph or paragraphs of this definition or with any other fuel or fuels.

Each vegetable oil emulsion is a blend of the on-road alternative fuel ethanol with 'any other ... fuel or fuels' (for example, diesel fuel).

Consequently, the blend is specifically excluded from being an 'on-road alternative fuel' as defined in section 4 of the EGCSA.

Date of decision: 18 November 2003

Legislative References:
Energy Grants (Credits) Scheme Act 2003
section 4

Related ATO Interpretative Decisions
ATO ID 2003/1165
ATO ID 2003/1166

Keywords
EGCS alternative fuel
Energy grants (credits) scheme

Business Line: Indirect Tax

Date of publication: 24 December 2003

ISSN: 1445-2782

history

	Date:	Version:
You are here →	18 November 2003	Original statement
	1 July 2012	Archived

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