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Ruling
Subject: Fuel tax credit - refrigerated vehicles
Question:
Are you entitled to a fuel tax credit for the use of diesel fuel in a refrigerated vehicle with a gross vehicle mass of less than 4.5 tonnes for travel on public roads?
Answer:
No.
This ruling applies for the following period:
2010-11 income year
2011-12 income year
The scheme commences on:
1 July 2010
Relevant facts and circumstances
You have a diesel refrigerated vehicle that is used to undertake the delivery of goods.
The vehicle is used solely for business purposes and has a combined gross vehicle mass (GVM) of less than 4.5 tonnes.
The vehicle is used for travel on public roads.
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 Part 3 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 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 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 or greater and the Australian Design Rules for heavy vehicles. In addition, the Heavy Vehicle Charges Determination that establishes the road-user charges for 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 have a refrigerated vehicle that is used to undertake the delivery of goods.
You use diesel fuel in the refrigerated vehicle which is used solely for business purposes and has a combined GVM of less than 4.5 tonnes. You travel on public roads.
As your vehicle does not have a GVM of greater than 4.5 tonnes, you are not entitled to a fuel tax credit for the use of diesel fuel in a refrigerated vehicle with a GVM of less than 4.5 tonnes for travel on public roads.
There is no provision in the fuel tax legislation that allows the Commissioner to exercise a discretion to allow fuel tax credits for a vehicle with a GVM of less than 4.5 tonnes travelling on a public road.