Private ruling: Fuel Tax
Date of advice: 16 November 2015
Published: January 2016
Ruling period: 1 July 2015 to 30 June 2018
Date scheme commenced: 1 July 2015

Ruling: Q1: Are the roads located in the specified Region (apart from those listed by the Department of Transport as Declared Roads) considered to be public roads for the purpose of section 41-20 of the Fuel Tax Act 2006 (FT Act)? | A1: No.

Relevant facts and circumstances: XXX conducts its operations in a region located in the relevant land in the Australian state. XXX is currently registered for goods and services tax and fuel tax credits. XXX has an office located in the specified Aboriginal township. The 'specified region' covers an area of approximately X square kilometres. The specified region covers all parts of the relevant land excluding particular region/ward. It also extends inside the western border of the relevant land. Section 4 of the relevant Act (Lands Rights Act) provides for both the establishment of land trust entity and for the transfer of title. Sections 10, 11 and 11B of the Land Rights Act provide guidance as to when the relevant Minister will make recommendations for grants of land to a land trust. Section 12 of the Land Rights Act provides that, on receipt of a recommendation under sections 10, 11 or 11B, the Governor-General may, subject to the provisions of section 12, execute a deed of grant in respect of that land in favour of a land trust. The freehold title of the relevant land, which comprises of the land in the specified Region, was granted by the Commonwealth to the relevant Aboriginal Land Trust (Land Trust) by way of two Deeds of Grant executed on a specific date in accordance with sections 4 and 12 of the Land Rights Act. The relevant land is administered by the particular Council which is a statutory authority established and operating under the provisions of the Land Rights Act. The following roads have been identified as declared roads and are under the control and care of the specific Government: • X Highway; • Y Highway; and • X Road

Relevant legislative provisions: Fuel Tax Act 2006 section 41-20. | Land rights Act 1976

Reasons for decision: Summary: Section 41-20 of the FTA states that you are not entitled to a fuel tax credit for taxable fuel to the extent that you acquire the fuel for use in a vehicle with a gross vehicle mass of 4.5 tonnes or less travelling on a public road. Fuel Tax Ruling FTR 2008/1 Fuel tax: vehicle's travel on a public road that is incidental to the vehicle's main use and the road user charge (FTR 2008/1), provides guidance in respect of the meaning of roads and public roads. Specifically, at paragraph 44 of FTR 2008/1 it is stated that a road is a public road 'if it is opened, declared or dedicated as a public road under statute'. The X Highway, Y Highway and X Road have been declared by the specific Government as public roads as supported by the map on the particular Government 'declared roads' web site and as such are considered public roads for the purposes of the FTA. The various paths, tracks and roads used by vehicles travelling from one place to another within the region, fall within the broad definition of roads for the purposes of the FTA. Roads in the specified Region can be classified as one of the following categories: 1. Roads on privately held land i.e. roads on the land of which the freehold title has been granted to X people (Land Trust under the relevant Deeds of Grant); and 2. Roads on non-vested land i.e. roads on the land of which the freehold title has been excluded from the Deed of Grant. It is considered that, generally, roads on Aboriginal Land are not public roads for the purposes of the FTA. The meaning of 'Aboriginal Land', for the purposes of the Australian state, is found in Land Rights Act 1976. Based on all the information provided, we have determined that the roads located in the specified Region, apart from the 3 roads listed i.e. X Highway, Y Highway and X Road, are not public roads for the purposes of the FTA.

Subject: Fuel Tax: Fuel tax credits in respect to roads on Aboriginal Land.