Private ruling: Fuel Tax Credits - use of heating oil
Published: September 2013
Ruling period: 1 July 2008 to 30 June 2012
Date scheme commenced: 1 July 2008

Ruling: Q1: Are you entitled to claim a fuel tax credit at the full rate of 38.143 cents per litre (cpl) in respect of fuel acquired and used in an incinerator to generate heat during the period 1 July 2008 to 30 June 2012? | A1: Yes

Relevant facts and circumstances: You were registered for goods and services tax from a specified date. You advised that you operated specified plants. You acquire and use heating oil in an incinerator furnace where it is combusted to generate sufficient heat to burn the product. Neither the incinerator nor its associated equipment contains an internal combustion engine.

Relevant legislative provisions: Fuel Tax Act 2006 section 41-5 | Fuel Tax (Consequential and Transitional Provisions) Act 2006 Division 2 of Part 3 of Schedule 3 | Fuel Tax (Consequential and Transitional Provisions) Act 2006 subitem 11(1) of Part 3 of Schedule 3 | Fuel Tax (Consequential and Transitional Provisions) Act 2006 subparagraph 11(1)(b)(v) of Part 3 of Schedule 3

Reasons for decision: Summary: 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. However, for the period 1 July 2008 to 30 June 2012 this entitlement is affected by Part 3 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 (FTCTPA) which operates to restrict this entitlement in reference to specific activities. Under subparagraph 11(1)(b)(v) of the FTCTPA you are entitled to claim a fuel tax credit under section 41-5 of the FTA for fuel acquired for use in carrying on your enterprise where that fuel is for use other than as a fuel in an internal combustion engine. You operated specified plants. The heating oil acquired was used in an incinerator furnace where it was combusted to generate sufficient heat to burn the product. The use of heating oil was integral to your enterprise. As such, you were using heating oil other than as a fuel in an internal combustion engine. Therefore, you satisfy subparagraph 11(1)(b)(v) of the FTCTPA and as such an entitlement to a fuel tax credit under section 41-5 of the FTA arises. Accordingly, you are entitled to claim a fuel tax credit at the full rate of 38.143 cpl in respect of fuel acquired and used in an incinerator to generate heat during the period 1 July 2008 to 30 June 2012.