ATO Interpretative Decision

ATO ID 2003/959 (Withdrawn)

Excise

Diesel Fuel Rebate Scheme: hospitality - diesel fuel used in providing power to a retail/hospitality business - fuel purchased prior to 1 July 2002
FOI status: may be released

This ATO ID is withdrawn from the database because it contains a view in respect of the diesel fuel rebate provisions of the Excise Act 1901 and or the Customs Act 1901 that were repealed with effect from 1 July 2003. Despite its withdrawal from the database, this ATO ID continues to be a precedential view in respect of decisions for fuel purchased before 1 July 2003.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Can a client who is otherwise eligible for diesel fuel rebate under the 'retail/hospitality' category in paragraph 78A(1)(ad) of the Excise Act 1901 be paid rebate under that paragraph for diesel fuel they purchased prior to 1 July 2002, but did not use until on or after 1 July 2002?

Decision

No. A client who is otherwise eligible for diesel fuel rebate under the 'retail/hospitality' category in paragraph 78A(1)(ad) of the Excise Act cannot be paid rebate under that category for diesel fuel they purchased prior to 1 July 2002, but did not use until on or after 1 July 2002.

Facts

The client carries on a retail/hospitality enterprise. The client purchases diesel fuel for use in generating electricity for the business.

The client does not have ready access to a commercial power supply.

The client purchased diesel fuel for use in generating electricity in carrying on their enterprise prior to 1 July 2002, but did not use the fuel until after that date.

Reasons for Decision

Schedule 1 Part 2 of the Diesel Fuel Rebate Scheme Amendment Act 2002 inserted paragraph 78A(1)(ad) into the Excise Act and made corresponding amendments to the Customs Act 1901. This paragraph extended the off-road diesel fuel rebate scheme to provide for a payment of rebate to a person who purchases diesel fuel for use by the person at particular premises to generate electricity for use in the course of carrying on, at those premises, an enterprise that

•: has, as its principal purpose, the retail sale of goods or services or the provision of hospitality, and
•: does not have, at those premises, ready access to a commercial supply of electricity.

Clause 10 of schedule 1 of the Diesel Fuel Rebate Scheme Amendment Act states that the amendments made by this schedule apply only in relation to diesel fuel that is purchased on or after 1 July 2002.

Fuel that is purchased prior to 1 July 2002 to be used for the purposes set out in paragraph 78A(1)(ad) of the Excise Act is therefore not eligible for rebate even if the fuel is not used until on or after 1 July 2002.

Date of decision: 2 October 2003

Legislative References:
Excise Act 1901
paragraph 78A(1)(ad)

Diesel Fuel Rebate Scheme Amendment Act 2002
Schedule 1-clause 10

Related ATO Interpretative Decisions
ATO ID 2003/958
ATO ID 2003/960

Keywords
DFRS claims
DFRS generation of electricity
DFRS hospitality
DFRS power generation
Diesel fuel rebate scheme
Excise
Excise payments

Business Line: Excise

Date of publication: 31 October 2003

ISSN: 1445-2782

history

	Date:	Version:
	2 October 2003	Original statement
You are here	8 January 2010	Archived

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