ATO Interpretative Decision

ATO ID 2004/103 (Withdrawn)

Excise

• This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.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.

Issue

Is a vehicle operating under trade plates a 'registered vehicle' as defined in section 4 of the Energy Grant (Credits) Scheme Act 2003 (EGCSA) for the purposes of the Energy Grants (Credits) Scheme?

Decision

No. A vehicle operating under trade plates is not a 'registered vehicle' as defined in section 4 of the EGCSA for the purposes of the Energy Grants (Credits) Scheme.

Facts

The client drives vehicles from a factory to a specialist body builder under the authority of State trade plates.

The trade plates allow the client to lawfully drive vehicles on public roads under limited circumstances.

Reasons for Decision

To be entitled to an energy grant for diesel fuel used in on-road operations of a vehicle, the vehicle concerned must be a 'registered vehicle'. Section 4 of the EGCSA contains the following relevant definition:

registered vehicle, means a vehicle that is registered for use on public roads.

Therefore, the requirement in the legislation is that the vehicle be registered for use on public roads, not merely that it is lawful to drive the vehicle on public roads.

'Registered vehicles' have completed the necessary preconditions to be registered for use on public roads, including:

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being assessed as roadworthy;

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payment of a fee to register the vehicle; and

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entry of the details of that specific vehicle on a register;

This situation contrasts with trade plates, where:

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the plate can be used before the vehicle is certified as roadworthy;

•

the fee is charged for the plates rather than for a particular vehicle; and

•

the plates can be placed on various vehicles, the details of which are not kept on a register.

Options such as trade plates and also unregistered vehicle permits are recognition that it is sometimes impractical to register a vehicle before it must travel on road. These options provide a means (other than meeting all the preconditions of registration) to allow the lawful operation of the vehicle on a public road, under limited circumstances. Accordingly, although it is lawful to drive a vehicle on a public road under the authority of trade plates, that vehicle has not been registered for use on public roads as it has not met all of the preconditions of registration.

As a vehicle operating under trade plates in not 'registered for use on public roads', it is not considered to be a 'registered vehicle' for the purposes of the EGCSA.

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

Keywords
EGCS on-road
EGCS registration
Energy grants (credits) scheme

Business Line:  Indirect Tax

Date of publication:  6 February 2004

ISSN: 1445-2782