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Edited version of your private ruling
Authorisation Number: 1012169581966
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Ruling
Subject: Fuel tax credits - vehicle under 4.5 tonnes - travel on public road
Question:
Are you entitled to claim a fuel tax credit for the use of diesel fuel in a vehicle with a GVM of under 4.5 tonnes that undertakes pilot escort services on public roads?
Answer:
No.
This ruling applies for the following periods:
2010-11 income year
2011-12 income year
The scheme commences on:
1 January 2011
Relevant facts and circumstances
Your vehicle is commercially registered for the sole purpose of undertaking pilot escort services to the heavy haulage/transport industry. The vehicle is also commercially insured.
Your vehicle has a gross vehicle mass (GVM) of less than 4.5 tonnes.
The nature of your business activities is to pilot the oversize loads on public roads.
You are seeking a private ruling to allow you to be eligible for the fuel tax credit scheme like other vehicles working in the transport industry that satisfy the greater than 4.5 tonne GVM requirement.
You acquire diesel fuel for use in these vehicles.
Your business is solely for this purpose and the oversize loads cannot move without the services of an accredited pilot escort.
You are registered for goods and services tax (GST).
Relevant legislative provisions
Fuel Tax Act 2006 section 41-5
Fuel Tax Act 2006 section 41-20
Fuel Tax (Consequential and Transitional Provisions) Act 2006 Division 2 of Schedule 3
Fuel Tax (Consequential and Transitional Provisions) Act 2006 subitem 11(1) of Schedule 3
Fuel Tax (Consequential and Transitional Provisions) Act 2006 subparagraph 11(1)(b)(i) of Schedule 3
Reasons for decision
Section 41-5 of the Fuel Tax Act 2006 (FTA) provides that you are entitled to a fuel tax credit for taxable fuel that you acquire in Australia to the extent that you do so for use in carrying on your enterprise if you are registered for GST. However, this entitlement is affected by Division 2 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 (FTCTPA) which operates to restrict this entitlement to specific activities for fuel acquired between 1 July 2008 and 30 June 2012.
The specific activities for which an entitlement exists are listed within subitem 11(1) of Schedule 3 to the FTCTPA.
Under subparagraph 11(1)(b)(i) of the FTCTPA you are entitled to claim a fuel tax credit for taxable fuel acquired between 1 July 2008 and 30 June 2012 for use in carrying on your enterprise where that fuel is for use in a vehicle travelling on a public road.
However, section 41-20 of the FTA provides that you are not entitled to a fuel tax credit if the fuel is for use in a vehicle with a gross vehicle mass (GVM) of 4.5 tonnes or less travelling on a public road.
Paragraph 2.48 of the Explanatory Memorandum to the Fuel Tax Bill 2006 states:
The break point of 4.5 tonnes or less gross vehicle mass aligns the eligibility for fuel tax credits with the additional licensing conditions that must be met in all Australian jurisdictions to drive a vehicle of this mass of greater and the Australian Design Rules for heavy vehicles. In addition, the Heavy Vehicle Charges Determination that establishes the road-user charges for heavy vehicles applies to vehicles over 4.5 tonnes.
The term 'gross vehicle mass' takes its ordinary meaning as the gross vehicle mass accepted by the authority that registered the vehicle.
You use diesel fuel in your vehicle which has a GVM of less than 4.5 tonnes for travel on a public road.
There is no legislative provision that provides for the Commissioner to exercise discretion to rule that a vehicle with a GVM of less than 4.5 tonne has a GVM of greater than 4.5 tonne.
Accordingly, you are not entitled to claim a fuel tax credit for the use of diesel fuel in a vehicle with a GVM of under 4.5 tonnes that undertakes pilot escort services on public roads.
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