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Edited version of private advice
Authorisation Number: 1012642284719
Ruling
Subject: Fuel tax credits - acquisition and use of fuel
The ruling was concerned with three questions in relation to the acquisition and use of fuel for fuel tax credits:
Question 1
Are you entitled to claim a fuel tax credit under section 41-5 of the Fuel Tax Act 2006 (FTA) for taxable fuel you acquire from a fuel supplier and free-issued to your contractors for the purpose of the transportation of your product?
Answer
The Commissioner ruled that you are entitled to a fuel tax credit under section 41-5 of the FTA for the taxable fuel you supply 'free-issue' to your contractors for the purpose of the transportation of your product.
Question 2
Are you entitled to a fuel tax credit under section 41-5 of the FTA for the taxable fuel, acquired by your contractors or other third parties, and used by the contractor in the initial journey in the transportation of your product?
Answer
The Commissioner ruled that as you acquire the contractor's taxable fuel which is consumed in the initial journey in the transportation of your product, you are entitled to a fuel tax credit for this fuel.
Question 3
Do you have an increasing fuel tax adjustment for the quantity of taxable fuel you acquired from a supplier and provided to the contractor as replenishment of the contractor's fuel used in the initial journey?
Answer
The Commissioner ruled that you do not have an increasing fuel tax adjustment for this taxable fuel as you did not claim a fuel tax credit for this fuel on acquisition of the fuel.
Relevant legislative provisions
Fuel Tax Act 2006 section 41-5
Fuel Tax Act 2006 subsection 41-5(1)
Fuel Tax Act 2006 section 44-5
Fuel Tax Act 2006 subsection 65-5(4)
Fuel Tax (Consequential and Transitional Provisions) Act 2006 Division 2 of Part 3 of Schedule 3
Fuel Tax (Consequential and Transitional Provisions) Act 2006 subparagraph 11(1)(b)(i) of Schedule 3
Fuel Tax (Consequential and Transitional Provisions) Act 2006 subparagraph 11(1)(b)(ii) of Schedule 3
Energy Grants (Credits) Scheme Act 2003 section 8
This ruling applies for the following periods:
2011-12 income year
2012-13 income year
2013-14 income year
The scheme commences on:
The scheme has commenced.