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Ruling
Subject: Fuel tax credits - road transport
Question 1
Are you entitled to a fuel tax credit for the use of diesel fuel in a 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 periods:
Year ending 30 June 2011
Year ending 30 June 2012
Year ending 30 June 2013
The scheme commences on:
1 July 2010
Relevant facts and circumstances
You are a partnership registered for goods and services tax (GST) in the road transport industry and you lodge your business activity statements (BAS) on a monthly basis
You own and operate a heavy vehicle escort business.
You use a number of vehicles for the purpose of escorting heavy vehicles with oversized loads. These vehicles are used 100% for business purposes.
You generally travel long distances within Australia.
You have supplied government licensing documents which show that both vehicles have the same following specifications:
aggregate weight of less than 4,500 kilograms; and
gross combination mass (GCM) of greater than 5,000 kilograms
Relevant legislative provisions
Fuel Tax Act 2006 section 41-5
Fuel Tax Act 2006 section 41-20
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, 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 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 on its ordinary meaning as the gross vehicle mass accepted by the authority that registered the vehicle which is the maximum loaded mass of a vehicle:
(a) as specified by the manufacturer; or
(b) as specified by the vehicle registration authority if:
(i) the manufacturer has not specified a maximum loaded mass; or
(ii) the manufacturer cannot be identified; or
(iii) the vehicle has been modified to the extent that the manufacturer's specification is no longer appropriate
Therefore the GVM normally appears on the compliance plate or in the specifications published for each vehicle. In your State of Australlia, the aggregate weight can be used instead of the GVM.
In contrast, gross combined mass (GCM) is the maximum permissible mass of a towing vehicle and its trailer or semi-trailer. It is the sum of the GVM of the towing vehicle and the gross trailer mass (GTM) of a trailer towed by that vehicle
You use a number of vehicles as pilot vehicles travelling on a public road. From the documents you have supplied we find that both your vehicles have an aggregate weight (GVM) of less than 4,500 kilograms and therefore a GVM of less than 4.5 tonnes.
Accordingly you are not entitled to a fuel tax credit for the use of diesel fuel in a vehicle with a gross vehicle mass of less than 4.5 tonnes for travel on public roads.
There is no discretion in the fuel tax legislation that permits the Commissioner to allow fuel tax credits for a vehicle with a GVM of less than 4.5 tonnes travelling on a public road and nor is there any discretion to consider the combined vehicle mass (GCM) of vehicles coupled together.