Issue
Is a client entitled to an on-road credit for both on-road diesel fuel and on-road alternative fuel when both fuels are used in the one vehicle, under section 42 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. A client is entitled to an on-road credit for both on-road diesel fuel and on-road alternative fuel when both fuels are used in the one vehicle, under section 42 of the EGCSA.
Facts
The client purchases on-road diesel fuel and on-road alternative fuel for use in activities that qualify for an on-road credit under section 42 of the EGCSA.
One vehicle has a modified diesel turbocharger that uses Liquefied Petroleum Gas (LPG) and air for combustion of the diesel fuel in the vehicle's engine. Another vehicle uses diesel to propel the vehicle and LPG to fuel the refrigeration unit attached to the vehicle.
Reasons for Decision
Under the Energy Grants Credits Scheme an entity is, subject to certain conditions, entitled to an energy grant if they are entitled to an on-road credit.
The client purchases on-road diesel fuel and on-road alternative fuel for use in activities that qualify for an on-road credit under section 42 of the EGCSA.
Subsection 57(3) of the EGCSA provides 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, a client is entitled to an on-road credit for both on-road diesel fuel and on-road alternative fuel when both fuels are used in the one vehicle.