ATO Interpretative Decision

ATO ID 2005/269 (Withdrawn)

Excise

Energy Grants (Credits) Scheme: off-road credit - use at a home for aged persons - retirement village
FOI status: may be released

This ATO ID is withdrawn and is replaced by ATO ID 2006/256.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 a retirement village for people aged 55 or more, which is designed for independent living, and where medical or nursing care is not provided, a 'home for aged persons' as required by paragraph 53(4)(d) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?

Decision

Yes. A retirement village for people aged 55 or more, which is designed for independent living, and where medical or nursing care is not provided, is a 'home for aged persons' as required by paragraph 53(4)(d) of the EGCSA.

Facts

An entity operates a retirement village.

The retirement village provides accommodation for people aged 55 or more, and is designed for independent living.

Residents of the retirement village live in communal or semi-communal dwellings.

No medical or nursing care is provided at the retirement village.

Reasons for Decision

Section 53 of the EGCSA provides that, subject to the conditions and restrictions specified in the Energy Grants (Credits) Scheme Regulations 2003, an entity is entitled to an off-road credit if they purchase or import into Australia off-road diesel fuel for a use by them that qualifies.

Subsection 53(4) of the EGCSA lists a number of uses that qualify. One use, set out in paragraph 53(4)(d) of the EGCSA is:

(d): use at a home for aged persons.

As the terms 'home' and 'aged persons' are not defined in the EGCSA, it is necessary to turn to the ordinary meaning of the terms. The Macquarie Dictionary, 2001, rev. 3rd edn, The Macquarie Library Pty Ltd, NSW, contains the following definition:

'home' noun:

1.
a house or other shelter that is the fixed residence of a person, a family, or a household.

The noun 'home' as contained in paragraph 53(4)(d) of the EGCSA is not preceded by an adjective such as 'nursing', it is merely described as a 'home'. This would indicate that a home for aged persons in the context of the EGCSA is just that, a fixed residence for persons, namely aged persons.

At precisely what age a person is considered to be 'aged' is a highly variable issue, and depends on the context. Many people retire at age 55, and many business sectors (including insurance companies and companies developing special accommodation) target persons who are 55 or over. Therefore it is accepted that persons who are 55 or over are 'aged' persons for the purposes of paragraph 53(4)(d) of the EGCSA.

The EGCSA does not explicitly require that a 'home for aged persons' provide medical or nursing care in order to be eligible for an energy grant and makes a distinction between premises used as a home for aged persons in paragraph 53(4)(d) of the EGCSA and premises used as a hospital, nursing home or any other institution providing medical or nursing care in paragraph 53(4)(c) of the EGCSA.

Given this distinction, a 'home for aged persons' is not required to provide medical or nursing care as such institutions are treated separately under paragraph 53(4)(c) of the EGCSA. Accordingly, a retirement village for persons aged 55 or more will be accepted as being a 'home for aged persons' regardless of the fact it is designed for independent living and no medical or nursing care is provided.

Accordingly, a retirement village for people aged 55 or more, which is designed for independent living, and where medical or nursing care is not provided, is a 'home for aged persons' as required by paragraph 53(4)(d) of the EGCSA.

Date of decision: 16 September 2005

Legislative References:
Energy Grants (Credits) Scheme Act 2003
   section 53
   subsection 53(4)
   paragraph 53(4)(c)
   paragraph 53(4)(d)

Other References:
The Macquarie Dictionary, 2001 rev. 3rd edn, Macquarie Library Pty Ltd, NSW

Keywords
EGCS use at a home for aged persons
EGCS use of eligible fuel at certain premises

Business Line: Excise

Date of publication: 23 September 2005

ISSN: 1445-2782

history

	Date:	Version:
	16 September 2005	Original statement
You are here	10 March 2006	Archived

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