Private ruling: Fuel tax credits - road transport
Published: December 2011
Ruling period: Year ending 30 June 2007 | Year ending 30 June 2008 | Year ending 30 June 2009 | Year ending 30 June 2010 | Year ending 30 June 2011 | Year ending 30 June 2012
Date scheme commenced: 1 July 2006

Ruling: Q1: Are you entitled to a fuel tax credit for the use of diesel fuel in a vehicle with a gross vehicle mass of less than 4.5 tonnes for travel on public roads? | A1: No.

Relevant facts and circumstances: You own and operate a road pilot business. You purchased a vehicle which was manufactured in 2006 for use in your pilot business. You have supplied government licensing documents which show that the vehicle is a four cylinder diesel vehicle with a tare weight of 1,850 kilograms, an aggregate weight of 2,920 kilograms and a gross combination mass (GCM) of 5,920 kilograms. You are registered for goods and services tax (GST).

Relevant legislative provisions: Fuel Tax Act 2006 section 41-5 | Fuel Tax Act 2006 section 41-20

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 if you are registered for GST. However, section 41-20 of the FTA provides that you are not entitled to a fuel tax credit if the fuel is for use in a vehicle with a GVM of 4.5 tonnes or less travelling on a public road. Paragraph 2.48 of the Explanatory memorandum to the Fuel Tax Bill 2006 states: The break point of 4.5 tonnes or less gross vehicle mass aligns the eligibility for fuel tax credits with the additional licensing conditions that must be met in all Australian jurisdictions to drive a vehicle of this mass or greater and the Australian Design Rules for heavy vehicles. In addition, the Heavy Vehicle Charges Determination that establishes the road-user charges for vehicles applies to vehicles over 4.5 tonnes. The term 'gross vehicle mass' takes on its ordinary meaning as the gross vehicle mass accepted by the authority that registered the vehicle which is the maximum loaded mass of a vehicle: (a) as specified by the manufacturer; or (b) as specified by the vehicle registration authority if: (i) the manufacturer has not specified a maximum loaded mass; or (ii) the manufacturer cannot be identified; or (iii) the vehicle has been modified to the extent that the manufacturer's specification is no longer appropriate Therefore the GVM normally appears on the compliance plate or in the specifications published for each vehicle. In your Australian State, the aggregate weight can be used instead of the GVM. In contrast, gross combined mass (GCM) is the maximum permissible mass of a towing vehicle and its trailer or semi-trailer. It is the sum of the GVM of the towing vehicle and the gross trailer mass (GTM) of a trailer towed by that vehicle From the documents you have supplied we find that your vehicle has an aggregate weight (GVM) of 2,920 kilograms which makes it a light vehicle and therefore not eligible for fuel tax credits for any fuel it may use. There is no discretion in the fuel tax legislation that permits the Commissioner to allow fuel tax credits for a vehicle with a GVM of less than 4.5 tonnes travelling on a public road and nor is there any discretion to consider the combined GVM of vehicles coupled together.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.