ATO Interpretative Decision

ATO ID 2005/270 (Withdrawn)

Excise

• This ATO ID has been amended to update the reference to Product Grants and Benefit Ruling PGBR 2005/3.
  This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.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

Does the poisoning of animals using baits constitute hunting or trapping for the purposes of section 27 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?

Decision

No. The poisoning of animals using baits does not constitute hunting or trapping for the purposes of section 27 of the EGCSA.

Facts

An entity provides a service of poisoning certain animals, using baits, for a fee. The service is provided on roadsides and properties that are not agricultural properties.

The entity uses poisoned grain as bait to control certain animals.

The entity uses a diesel vehicle when laying out the poisoned grain.

Reasons for Decision

Paragraph 27(i) of the EGCSA states, in part, that the expression 'sundry agricultural activity' means:

...

(i)

hunting or trapping that is carried on for the purposes of a business, including the storage of any carcasses or skins obtained from hunting or trapping as an agricultural activity.

...

The terms 'hunting' and 'trapping' are not defined in the EGCSA and so take their ordinary meanings. The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne, defines 'hunting' as:

the practice of pursuing and killing wild animals, esp. for sport;

and 'trapping' as:

1.

to catch (an animal) in a trap.

4.

provide (a place) with traps.

The term 'trap' takes its ordinary meaning as defined in The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne. The first derivation of the word 'trap' is defined as:

Trap¹ 1a an enclosure or device often baited for catching animals, usu. by affording a way in but not a way out. b a device with bait for killing vermin, esp. = mousetrap.

Consequently 'trapping' refers to the setting and use of devices, often baited and made for catching and killing animals.

The entity kills certain animals using poisoned grain as bait. This activity cannot be considered to be 'hunting' as the animals are not pursued. Nor can the entity's activities be considered to be 'trapping' as no traps are used for the purposes of catching or killing the animals.

Accordingly, the poisoning of animals is not hunting or trapping for the purposes of section 27 of the EGCSA.

Legislative References:
Energy Grants (Credits) Scheme Act 2003
   subsection 27
   paragraph 27(i)

Related Public Rulings (including Determinations)
Product Grants and Benefit Ruling PGBR 2005/3.

Other References:
The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne

Keywords
EGCS agriculture
EGCS primary production
EGCS sundry agricultural activity
EGCS weed, pest or disease control
Energy grants (credits) scheme

Business Line:  Indirect Tax

Date of publication:  23 September 2005

ISSN: 1445-2782