Issue
Is a forklift with a gross vehicle mass (GVM) of between 4.5 tonnes and 20 tonnes, a 'vehicle for transporting passengers or goods' for the purposes of subsection 43(1) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
No. A forklift with a gross vehicle mass (GVM) of between 4.5 and 20 tonnes is not a 'vehicle for transporting passengers or goods' for the purposes of subsection 43(1) of the EGCSA.
Facts
A client operates a road transport business that uses a forklift to load and unload their trucks at their depot and at delivery points.
The forklift is registered for use on public roads and its GVM is between 4.5 and 20 tonnes.
The forklift is designed to carry out special purpose work, such as the lifting and carrying of goods for short distances.
Reasons for Decision
Subsection 43(1) of the EGCSA specifies the general circumstances when a client will be entitled to an on-road credit for diesel fuel or alternative fuel purchased for use in a registered vehicle that has a GVM of 4.5 tonnes or more, but less than 20 tonnes. It provides that the relevant vehicle must be a 'vehicle for transporting passengers or goods.'
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 EGCS Act. 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)...
Consequently the following factors are relevant in determining whether a vehicle is a vehicle for transporting passengers or goods if: • is it designed for the purpose of transporting goods or passengers? • is it more properly regarded as a special purpose vehicle?
A forklift is not specifically designed to transport passengers or goods, and is not suitable for this purpose. Rather, the forklift is designed to carry out special purpose work, being forklift operations work. Accordingly, the forklift is not a 'vehicle for transporting passengers or goods', but more properly regarded as a special purpose vehicle.