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Is the activity of transplanting seedlings within a forest or plantation, an eligible activity within the meaning of 'forestry' for the purposes of paragraph 35(a) of the Energy Grants (Credits) Scheme 2000 (EGCSA)?

Yes. The transplanting of seedlings in a forest or plantation is an eligible activity within the meaning of 'forestry' for the purposes of paragraph 35(a) of the EGCSA.

An entity operates a forest or plantation.

The entity has a nursery located in the forest or plantation which is managed by the entity.

New trees are propagated in the nursery.

Seedlings are transplanted from the nursery to the coupe in the forest or plantation.

A person is entitled to an off-road credit if they purchase diesel fuel for use in the planting or tending, in a forest or plantation, of trees intended for felling. The activity must be carried out as part of a commercial undertaking to obtain timber as a primary produce.

Paragraph 35(a) of the EGCSA provides the meaning and core activity of 'forestry' as the planting or tending, in a forest or plantation, of trees intended for felling.

The activity of transplanting seedlings from a forest or plantation nursery to the forest coupe where they will grow to maturity, is an activity undertaken in the course of the 'planting or tending of trees.' This is an activity conducted and contained in the core forestry activity, and therefore is 'forestry' for the purposes of paragraph 35(a) of the EGCSA.

Consequently diesel fuel used to carry out the transplanting is eligible for the off-road grant.