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Is a client, who uses on-road diesel fuel and on-road alternative fuel in the one vehicle, eligible for an on-road credit in the form of an energy grant under section 56 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA) for both the on-road diesel fuel and the on-road alternative fuel?

Yes. A client is eligible for an off-road credit in the form of an energy grant for both the on-road diesel fuel and the on-road alternative fuel when it is used in the one vehicle, under section 56 of the EGCSA.

A client purchases on-road diesel fuel and on-road alternative fuel for use in registered vehicles with a gross vehicle mass (GVM) of 20 tonnes or more.

One vehicle has a modified diesel charger and uses liquid petroleum gas and air to combust the diesel fuel. Another vehicle uses diesel to propel the vehicle and liquid petroleum gas to fuel the refrigeration unit attached to the vehicle.

Both fuel types are used exclusively in activities that qualify for an on-road credit under section 42 of the EGCSA, which applies to vehicles with a GVM of 20 tonnes or more.

Section 56 of the EGCSA provides that an energy grant is payable if a person is eligible for an on-road credit.

The client uses on-road diesel fuel and on-road alternative fuel in activities that qualify for an on-road credit under section 42 of the EGCSA.

Subsection 57(3) of the EGCSA specifies that where the regulations specify different rates of energy grant for different fuel types, a person's entitlement will equate to the sum of the amounts worked out for each type of fuel. Hence, the EGCSA envisages that some persons may be eligible for an energy grant in respect of more than one type of fuel.

The EGCSA does not provide for any special treatment where two or more fuels are used within the one vehicle.

Therefore, provided the fuel purchased by the client is used in eligible activities, an on-road credit in the form of an energy grant will be payable (at the appropriate rate) in respect of both the on-road diesel fuel and the on-road alternative fuel consumed within the one vehicle.