Issue
Is firebreak maintenance in a plantation of trees intended for felling, the 'tending' of trees for the purposes of paragraph 35(a) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. Firebreak maintenance in a plantation of trees intended for felling is the 'tending' of trees for the purposes of paragraph 35(a) of the EGCSA.
Facts
The client is contracted by a forestry authority to slash scrub in a plantation as part of fire-break maintenance. The trees in the plantation are intended for felling.
The client undertakes the slashing using a diesel powered tractor.
Reasons for Decision
Subsection 53(1) of the EGCSA states that you are entitled to an off-road credit if you purchase diesel fuel for a use by you that qualifies, including forestry. 'Forestry' is defined in section 35 of the EGCSA as: (a) the planting or tending, in a forest or plantation, of trees intended for felling; or...
In this instance, the trees are in a plantation and are intended for felling. Therefore, the only issue left to determine is whether the slashing of scrub for firebreak maintenance is the 'tending' of trees.
The term 'tending' is not defined in the EGCSA and therefore takes on its ordinary, common meaning. In the Macquarie Dictionary 2001, rev. 3rd edn, The Macquarie Library Pty Ltd, NSW, the verb to tend is defined as: 1. to attend to by work or services, care etc: to tend a fire 2. to look after; watch over and care for; minister to or wait on with service.'
Consequently, the 'tending of trees' means the undertaking of activities to ensure the survival of the trees or to enhance their growth, quality and vigour.
The slashing of scrub for firebreak maintenance ensures the survival of the trees in the plantation in case of fire and is therefore part of the 'tending' of the trees and consequently 'forestry' for the purposes of paragraph 35(a) of the EGCSA.
Related ATO Interpretative Decsions
ATO ID 2004/267