ATO Interpretative Decision

ATO ID 2004/107 (Withdrawn)

Excise

Energy Grants (Credits) Scheme: mining operations - use of fork-lifts during the recovery and/or beneficiation of minerals
FOI status: may be released

This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.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

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Is the use of a fork-lift to transport essential items utilised in the recovery and/or beneficiation of minerals within a mine site, 'mining operations' as defined in section 11 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?

Decision

Yes. The use of a fork-lift to transport essential items utilised in the recovery and/or beneficiation of minerals within a mine site is 'mining operations' as defined in section 11 of the EGCSA.

Facts

The entity operates in the mining industry and undertakes open cut mining.

The fork-lifts are used around the site to move heavy items such as pipes, pallets and drilling equipment. The pipes, pallets and drilling equipment are used to mine for minerals and beneficiate those minerals.

Reasons for Decision

The term 'mining operations' is defined in section 11 of the EGCSA. The definition includes operations for the recovery of minerals, being mining for minerals or beneficiation of those minerals, or of ores bearing those minerals.

However, subsection 11(2) of the EGCSA excludes from the meaning of 'mining operations' various activities including:

(b): use of a vehicle (other than a fork-lift, front end loader, tractor or other similar vehicle that is specified in the regulations) not exceeding 3.5 tonnes gross vehicle mass, other than such a vehicle that is extensively modified for use underground while it is so used;

As the fork-lifts are being used in the recovery and/or beneficiation of minerals, and fork-lifts are not excluded by paragraph 11(2)(b) of the EGCSA, the use of fork-lifts to transport essential items (such as water pipes and drilling equipment) qualifies as 'mining operations' as defined in section 11 of the EGCSA.

The rationale applied to fork-lifts can equally be applied to front-end loaders, tractors and other similar vehicles that are specified in the regulations.

Date of decision: 23 January 2004

Legislative References:
Energy Grants (Credits) Scheme Act 2003
   section 11
   paragraph 11(2)
   paragraph 11(2)(b)
   subsection 11(3)

Related Public Rulings (including Determinations)
Fuel Grant and Rebate Ruling FGRR 2002/1

Keywords
EGCS beneficiation
EGCS mining operation
EGCS mining vehicle activity
EGCS vehicles
Energy grants (credits) scheme

Business Line: Indirect Tax

Date of publication: 6 February 2004

ISSN: 1445-2782

history

	Date:	Version:
	23 January 2004	Original statement
You are here	1 July 2012	Archived

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