ATO Interpretative Decision
ATO ID 2003/884
Excise
Energy Grants (Credits) Scheme: On-road entitlements - whether a mobile crane is a 'vehicle for transporting passengers or goods'FOI status: may be released
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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 mobile crane with a gross vehicle mass (GVM) of 20 tonnes, a 'vehicle for transporting passengers or goods' for the purposes of section 42 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
No. A mobile crane with a gross vehicle mass (GVM) of 20 tonnes, is not a 'vehicle for transporting passengers or goods' for the purposes of section 42 of the EGCSA.
Facts
A client operates a construction business that uses a mobile crane.
The mobile crane is a vehicle that is registered for use on public roads and has a GVM of 20 tonnes. It is designed to carry out special purpose work, namely crane operations.
The crane leaves the client's work depot and drives to a work location, where it is used in construction related activities. The crane remains stationary for the duration of these operations.
Reasons for Decision
Section 42 of the EGCSA specifies a number of circumstances when a client will be entitled to an on-road credit for the use of diesel fuel or alternative fuel in a registered vehicle that has a GVM of 20 tonnes or more. The section specifies two different levels of entitlement, depending on the nature of the vehicle.
If the vehicle is a vehicle for transporting passengers or goods, an on-road credit is available for eligible fuel used in operating the vehicle on a road in Australia.
However, if the vehicle is not a vehicle for transporting passengers or goods, the on-road credit only applies to the movement of the vehicle to a place (whether or not on a road) where it is to operate, and from a place (whether or not on a road) where it has operated.
In determining whether a vehicle is a 'vehicle for transporting passengers or goods', the Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999 should be considered, as it contains the same terminology that appears in the EGCSA. When discussing the eligibility of 'vehicles for transporting passengers or goods', the Explanatory Memorandum refers to vehicles that are;
...designed
for transporting passengers or goods... [emphasis added]
The Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003 and the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003 provides an example of a vehicle that is not for transporting goods or passengers.
Paragraph 2.8 of the Explanatory Memorandum states:
...If a vehicle is not for transporting goods or passengers (e.g. special purpose vehicles such as mobile cranes), it will only be eligible for the movement to or from the place where it is to be, or has been used.
The following tests are relevant in determining whether a particular vehicle is a 'vehicle for transporting goods or passengers':
- (a)
- Is the vehicle designed for the purpose of transporting goods or passengers?
- (b)
- Is the vehicle a special purpose vehicle?
A mobile crane is not specifically designed to carry passengers or goods, and is not suitable for this purpose. Rather, the crane is designed to carry out special purpose work, being crane operations work. Accordingly, the mobile crane is not a 'vehicle for transporting passengers or goods', but more properly regarded as a special purpose vehicle.
Date of decision: 28 August 2003
Legislative References:
Energy Grants Credits Scheme Act 2003
section 42
ATO ID 2003/815
Other References:
Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999
Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003 and the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003
Keywords
EGCS on-road
Vehicle for transporting passengers or goods
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 28 August 2003 | Original statement |
| 1 July 2012 | Archived |
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