Issue
Where a client has purchased on-road diesel fuel prior to 1 July 2003 and made a claim for an on-road grant under the Diesel and Alternative Fuels Grants Scheme Act 1999 (repealed) (DAFGSA) for that portion of the fuel that was eligible for a grant under that Act, does Schedule 7 of the Energy Grants (Credits) Scheme (Consequential Amendments) Act 2003 (the Consequential Amendments Act) allow the entity to claim an energy grant for the unclaimed portion of the fuel?
Decision
Yes. Where a client has purchased on-road diesel fuel prior to 1 July 2003 and made a claim for an on-road grant under the DAFGSA for that portion of the fuel that was eligible for a grant under that Act, Schedule 7 of the Consequential Amendments Act does allow the entity to claim an energy grant for the unclaimed portion of the fuel.
Facts
A client purchased diesel fuel prior to 30 June 2003 that they used for two purposes. The fuel is 'on-road diesel fuel' for the purposes of the Energy Grants (Credits) Scheme Act 2003 (EGCSA) and the Consequential Amendments Act.
Only one of the purposes the fuel was used for was eligible for a grant under DAFGSA, and the client claimed under that scheme accordingly.
The second purpose, while ineligible under DAFGSA, is eligible under the EGCSA. The client has lodged a claim for an energy grant for this fuel. The claim was made within three years of the purchase of the fuel and meets all the requirements that need to be satisfied when making a claim for an energy grant.
Reasons for Decision
On 30 June 2003 the on-road diesel and alternative fuels grants scheme administered under the DAFGSA effectively ceased and was replaced by the energy grants credits scheme administered under the EGCSA.
The EGCSA came into effect on 1 July 2003 and applies to fuel purchased from that date for use in defined activities, including certain road transport activities.
The EGCSA replicates many of the provisions of the DAFGSA. However, some activities which were not eligible for an on-road credit under the DAFGSA are now eligible under the EGCSA.
Schedule 7 of the Consequential Amendments Act extends the EGCSA so that, in certain circumstances, an entity can claim an energy grant for on-road diesel fuel purchased or imported into Australia before 1 July 2003.
Subitems 1(1), 1(1A) and 1(2) of Schedule 7 of the Consequential Amendments Act state: (1) Subject to subitem (1A) this item applies if, during the period from the beginning of 1 July 2000 until the end of 30 June 2003, an entity purchased or imported into Australia on-road diesel fuel, on-road alternative fuel or off-road diesel fuel, within the meaning of the EGCSA as in force on 1 July 2003 (including as affected by regulations under that Act commencing on that day). (1A) This item does not apply if: (a) the on-road alternative fuel is liquefied natural gas or biodiesel; or (b) the entity purchased or imported into Australia the off-road diesel fuel before 1 July 2002 for a use mentioned in paragraph 53(4)(a) of the Energy Grants (Credits) Scheme Act 2003 as in force on 1 July 2003. (2) The Energy Grants (Credits) Scheme Act 2003 and regulations under that Act apply to fuel to which this item applies in the same way as they apply to on-road diesel fuel, on-road alternative fuel or off-road diesel fuel purchased or imported into Australia on 1 July 2003. Note: The effect of subitem (2) will be to create entitlement to energy grants that, subject to subitem (3), can be claimed under section 15 of the Product Grants and Benefits Administration Act 2000. However, because of the claim period requirements in that section, a claim will not be able to be made more than 3 years after the actual time of purchase or importation of the fuel concerned.
Consequently, as the entity's claim does not involve liquefied natural gas or biodiesel, the entity is entitled to make a claim for energy grants provided that they meet the requirements of subitem 1(3) of Schedule 7 of the Consequential Amendments Act, and make any such claim within 3 years of the purchase of the fuel.
However, paragraph (a) of subitem 1(3) of Schedule 7 of the Consequential Amendments Act limits the circumstances in which a person can make an energy grant claim for fuel purchased prior to 1 July 2003. It provides that an entity is not entitled to claim an energy grant if: the entity has made a claim (other than one that has been withdrawn) in respect of the same fuel under section 15 of the Diesel and Alternative Fuels Grants Scheme Act 1999 , including in its operation in accordance with item 2 of Schedule 2 to this Act.
Under the diesel and alternative fuels grants scheme, a client was required to state on their claim form (together with other information) the total number of litres for which they were claiming.
In this instance, the client has only submitted claims under DAFGSA in respect of the litres that were used for eligible purposes under that scheme. Therefore, no claims were submitted in respect of fuel that was not eligible under DAFGSA.
Accordingly, the entity has not previously claimed for the diesel fuel that was used for an eligible purpose under the EGCSA (but was not eligible under DAFGSA).
Therefore, where a client has purchased on-road diesel fuel prior to 1 July 2003 and made a claim for an on-road grant under the DAFGSA for that portion of the fuel that was eligible for a grant under that Act, Schedule 7 of the Consequential Amendments Act allows the entity to claim an energy grant for the unclaimed portion of the fuel.