Issue
Is a mobile crane with a gross vehicle mass (GVM) of 20 tonnes, a 'vehicle for transporting passengers or goods' for the purposes of section 42 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
No. A mobile crane with a gross vehicle mass (GVM) of 20 tonnes, is not a 'vehicle for transporting passengers or goods' for the purposes of section 42 of the EGCSA.
Facts
A client operates a construction business that uses a mobile crane.
The mobile crane is a vehicle that is registered for use on public roads and has a GVM of 20 tonnes. It is designed to carry out special purpose work, namely crane operations.
The crane leaves the client's work depot and drives to a work location, where it is used in construction related activities. The crane remains stationary for the duration of these operations.
Reasons for Decision
Section 42 of the EGCSA specifies a number of circumstances when a client will be entitled to an on-road credit for the use of diesel fuel or alternative fuel in a registered vehicle that has a GVM of 20 tonnes or more. The section specifies two different levels of entitlement, depending on the nature of the vehicle.
If the vehicle is a vehicle for transporting passengers or goods, an on-road credit is available for eligible fuel used in operating the vehicle on a road in Australia.
However, if the vehicle is not a vehicle for transporting passengers or goods, the on-road credit only applies to the movement of the vehicle to a place (whether or not on a road) where it is to operate, and from a place (whether or not on a road) where it has operated.
In determining whether a vehicle is a 'vehicle for transporting passengers or goods', the Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999 should be considered, as it contains the same terminology that appears in the EGCSA. When discussing the eligibility of 'vehicles for transporting passengers or goods', the Explanatory Memorandum refers to vehicles that are; ...designed for transporting passengers or goods... [emphasis added]
The Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003 and the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003 provides an example of a vehicle that is not for transporting goods or passengers.
Paragraph 2.8 of the Explanatory Memorandum states: ...If a vehicle is not for transporting goods or passengers (e.g. special purpose vehicles such as mobile cranes), it will only be eligible for the movement to or from the place where it is to be, or has been used.
The following tests are relevant in determining whether a particular vehicle is a 'vehicle for transporting goods or passengers': (a) Is the vehicle designed for the purpose of transporting goods or passengers? (b) Is the vehicle a special purpose vehicle?
A mobile crane is not specifically designed to carry passengers or goods, and is not suitable for this purpose. Rather, the crane is designed to carry out special purpose work, being crane operations work. Accordingly, the mobile crane is not a 'vehicle for transporting passengers or goods', but more properly regarded as a special purpose vehicle.