Issue
Is a grader with a gross vehicle mass (GVM) of between 4.5 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 grader with a 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 maintenance business which uses a grader.
The grader has a GVM of between 4.5 and 20 tonnes and is registered for use on public roads. The principal purpose of the grader is to work on the construction and maintenance of unsealed roads. The grader pushes and spreads the road material and undertakes grading of the road surface to ensure the surface is level.
Reasons for Decision
Subsection 43(1) of the EGCSA provides that a claimant is entitled to an on-road credit if they purchase diesel or alternative fuel for: (a) use in a registered vehicle that has a gross vehicle mass of 4.5 tonnes or more, but less than 20 tonnes, where the vehicle is a vehicle for transporting passengers or goods; or (b) incidental use in relation to such a vehicle.
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 that Bill (and the resulting Diesel and Alternative Fuels Grants Scheme Act 1999 ) contain 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.
We consider that 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 grader is not specifically designed to carry passengers or goods, and is not suitable for this purpose. Rather, a grader is designed to carry out special purpose work, being grader operations work. Accordingly, the grader is a special purpose vehicle and not a 'vehicle for transporting passengers or goods' for the purposes of the EGCSA.