ATO Interpretative Decision

ATO ID 2004/328 (Withdrawn)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• This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.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 an emergency vehicle as defined in section 4 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA) if it is fitted with emergency services equipment, operated by a private 'for-profit' company, has external markings that identify it as a firefighting vehicle, and is used to provide firefighting and fire prevention services under contract to a government authority?

Decision

Yes. A vehicle is an emergency vehicle as defined in section 4 of the EGCSA if it is fitted with emergency services equipment, operated by a private 'for-profit' company, has external markings that identify it as a firefighting vehicle, and is used to provide firefighting and fire prevention services under contract to a government authority.

Facts

An entity is contracted by a government authority to assist in wildfire suppression activities which involve undertaking firebreak maintenance, implementing firebreaks and other bushfire control measures during wildfires.

The entity undertaking the activities is not an ambulance service or police force.

Plant and equipment used in the wildfire suppression activities include registered vehicles with a gross vehicle mass of 4.5 tonnes or more.

These registered vehicles are permanently equipped with flashing warning lights, equipment for fighting fires and external signage identifying the vehicles as firefighting vehicles.

The vehicles are not designed and permanently fitted out for search and rescue operations.

Reasons for Decision

Section 47 of the EGCSA states that, subject to certain conditions, an entity is entitled to an on-road credit for the purchase of on-road diesel or alternative fuel for use in an emergency vehicle that is a registered vehicle and has a gross vehicle mass of 4.5 tonnes or more.

Section 4 of the EGCSA defines the term 'emergency vehicle' to mean a vehicle that is specified in the regulations to be an emergency vehicle, or that is in a class of vehicles that are specified in the regulations as being emergency vehicles.

Regulation 5 of the Energy Grants (Credits) Scheme Regulations (the Regulations) states that for the purposes of section 4 of the EGCSA, 'emergency vehicles' include the following:

(a)

a vehicle that is:

(i)

operated by an ambulance service; and

(ii)

fitted with a siren and a flashing warning light;

(b)

a vehicle that:

(i)

is operated by a firefighting service; and

(ii)

is designed, permanently fitted out and equipped for the purposes of preventing and fighting fires; and

(iii)

has external markings that identify the vehicle as a firefighting vehicle;

(c)

a vehicle that is:

(i)

operated by a police force or service; and

(ii)

fitted with a siren and a flashing warning light;

(d)

a vehicle that:

(i)

is designed and permanently fitted out for the purposes of emergency response or search and rescue operations; and

(ii)

has external markings that identify it as such a vehicle;

(e)

a vehicle, other than a vehicle mentioned in paragraph (a), (b), (c) or (d), that is:

(i)

operated by the Commonwealth or a State or Territory, or by a Commonwealth, State or Territory authority, for a purpose similar to a purpose indicated in any of those paragraphs; and

(ii)

identified as such a vehicle by a siren, flashing warning light, appropriate markings, or similar means.

Paragraphs 5(a), 5(c) and 5(d) of the Regulations are not applicable. The vehicle is not used by an ambulance service, operated by a police force or service, or designed for search and rescue operations.

Paragraph 5(e) of the Regulations is also not applicable. While the vehicle is being used to provide firefighting services on behalf of a Commonwealth, State or Territory authority, the vehicle is not operated by a Commonwealth, State or Territory authority.

Accordingly, the vehicle will qualify as an emergency vehicle if it meets the requirements of paragraph 5(b) of the Regulations. The key requirements stated in paragraph 5(b) are that the vehicle:

•

is operated by a firefighting service; and

•

is designed, permanently fitted out and equipped for the purposes of preventing and fighting fires; and

•

has external markings that identify the vehicle as a firefighting vehicle.

The vehicle clearly satisfies the second and third requirements. Therefore, the vehicle will be an emergency vehicle if the entity that operates the vehicle can be properly classified as a firefighting service.

Importantly, there is no express requirement in the regulation that the firefighting service be a non-profit body. If this were the case, only organisations such as the Country Fire Service would be eligible.

In the absence of such a requirement, the term firefighting service can be interpreted as meaning an organisation that provides firefighting services. In this instance, the entity is providing firefighting services - albeit under contract to a government department. Therefore the entity is a firefighting service.

As all the requirements of regulation 5, paragraph (b) of the Regulations are satisfied, the vehicle is an emergency vehicle as defined in section 4 of the EGCSA.

Legislative References:
Energy Grants (Credits) Scheme Act 2003
   section 4
   section 47

Related ATO Interpretative Decisions
ATO ID 2004/266

Keywords
Energy grants (credits) scheme
EGCS emergency vehicles

Business Line:  Indirect Tax

Date of publication:  8 April 2004

ISSN: 1445-2782