Private ruling: Fuel Tax Credits and Road User Charge
Date of advice: 4 December 2015
Published: February 2016

Ruling: Q1: Is the entitlement to fuel tax credits, in heavy vehicles off road, affected by the road user charge? | A1: No

Relevant facts and circumstances: You are a logistic, transport and warehousing which specialises in container storage. You are registered for goods and services tax (GST) and fuel tax credits (FTC). You account for GST and FTC on an accrual basis and report your activity statement monthly. You operate a fleet of heavy vehicles which include prime movers, trailers and trucks. All of your heavy vehicles have a gross vehicle mass of over 4.5 tonnes and are all manufactured on or after 1 January 1996. Some of your heavy vehicles use fuel to power auxiliary equipment. Other heavy vehicles which do not operate auxiliary equipment. You arrange the transportation of containers. The loading and unloading of containers will have your vehicles idle for up to an hour at each end of each trip 'off-road'.

Relevant legislative provisions: Fuel Tax Act 2006 Subsection 43-10(3)

Reasons for decision: Summary: Subsection 43-10(3) of the Fuel Tax Act 2006 (FTA) imposes the road user charge on the fuel tax credit. Road user charge (3) To the extent that you acquire, manufacture or import taxable fuel to use, in a vehicle, for travelling on a public road, the amount of the fuel tax credit for the fuel is reduced by the amount of the road user charge for the fuel. Note: Only certain motor vehicles whose gross vehicle mass is more than 4.5 tonnes are entitled to any credit. The Note to subsection 43-10(3) of the FTA is in reference to section 41-20 of the FTA which denies a fuel tax credit for fuel used in a vehicle with a gross vehicle mass of 4.5 tonne or less travelling on a public road. A reduction in fuel tax credits, by the road user charge, is in accordance with subsection 43-10(3) of the FTA, subject to the application of subsection 43-10(4) of the FTA. As such, subsection 43-10(3) of the FTA only has application where the vehicle has a gross vehicle mass greater than 4.5 tonne and when the vehicle is on a public road. As you have stated above, your vehicles spend significant periods of time idling on your customer sites effectively being off a public road. Subsection 43-10(3) does not come into effect as your heavy vehicles are not on a public road reduced by the road user charge.