ATO Interpretative Decision
ATO ID 2003/815
Excise
Energy Grants (Credits) Scheme: On-road entitlements - eligibility of driver training vehicleFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is a truck with a gross vehicle mass (GVM) of between 4.5 and 20 tonnes that is capable of carrying goods but used solely as a driver training vehicle, a 'vehicle for transporting passengers or goods' as required by paragraph 43(1)(a) of the Energy Grants (Credits) Scheme Act 2003?
Decision
Yes. A truck with a GVM of between 4.5 and 20 tonnes that is capable of carrying goods but used solely as a driver training vehicle, is a 'vehicle for transporting passengers or goods' as required by paragraph 43(1)(a) of the EGCSA.
Facts
An entity operates a truck driving school.
The trucks used in training activities use on-road diesel fuel and have a GVM of 4.5 tonnes or more, but less than 20 tonnes. The trucks are designed to transport goods and remain capable of carrying goods.
The trucks are used solely for training purposes and are not used for the general transporting of passengers or goods.
Reasons for Decision
Section 43 of the EGCSA specifies a number of circumstances when an entity will be entitled to an on-road credit for the use of diesel fuel or alternative fuel in a vehicle that has a GVM of 4.5 tonnes or more, but less than 20 tonnes. However, the section prescribes a number of conditions that must be satisfied in order for an on-road credit to be available.
One of the requirements, set out in paragraph 43(1)(a) of the EGCSA, is that the vehicle must be a vehicle for transporting passengers or goods.
There is no legislative requirement that the vehicle must actually be used to carry passengers or goods in order to meet the requirements for an energy grant.
It is considered sufficient if the vehicle is both designed for the purpose of transporting goods or passengers and suitable for this purpose.
As the truck in question is specifically designed to carry goods, and is suitable for this purpose, the requirement set out in paragraph 43(1)(a) of the EGCSA is satisfied, notwithstanding the fact that the truck is not being used for this purpose.
Date of decision: 29 August 2003
Legislative References:
Energy Grants (Credits) Scheme Act 2003
section 43
paragraph 43(1)(a)
Keywords
EGCS on-road
Vehicle for transporting passengers or goods
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 29 August 2003 | Original statement |
| 1 July 2012 | Archived |