Issue
Is diesel used in a vehicle, in a forest or plantation, for the purposes of supervision and management of an eligible forestry activity, an eligible use in 'forestry' for the purposes of section 35 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. Diesel used in a vehicle, in a forest or plantation, for the purposes of supervision and management of an eligible forestry activity, is an eligible use in 'forestry' for the purposes of section 35 of the EGCSA.
Facts
A diesel powered vehicle is used to transport a forest manager, within a forest or plantation, to supervise and/or manage a forestry activity.
The manager supervises eligible forestry activities, including the planting and tending of trees and the felling of timber.
Reasons for Decision
Similar to the previous off-road scheme, the Energy Grants (Credits) Scheme is a beneficial scheme that confers benefits on persons who undertake certain activities. The entitlement provisions of these schemes are intended to be read in a practical commonsense manner ( Re Central Norseman Gold Corporation Limited and Collector of Customs, Western Australia AAT NO W84/118; (1985) 8 ALN N288).
In a forest or plantation, forest management is undertaken in line with a forestry management plan to produce timber as primary produce.
In paragraph 35(a) of the EGCSA the term 'tending of trees' means the undertaking of activities to ensure the survival of the trees or to enhance their growth, quality and vigour.
The term 'tending' is not defined in the EGCSA and therefore takes on its ordinary, common meaning. In the 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 term 'supervision' is not defined in the EGCSA and therefore takes on its ordinary, common meaning. In The Macquarie Dictionary, the verb 'supervise' is defined as: 1. to oversee (a process, work, workers, etc.) during execution or performance; superintend; have the oversight and direction of.
The term 'management' is not defined in the EGCSA and therefore takes on its ordinary, common meaning. In The Macquarie Dictionary, the verb 'manage' is defined as: 1. to bring about; succeed in accomplishing 4. to handle, direct, govern, or control in action or use
The supervisor/manager of forestry personnel engaged in planting and tending trees is part of the workforce engaged in 'planting and tending' and is therefore undertaking an eligible activity in 'forestry'.
In our view the supervision of personnel involved in a forestry activity and the management of an eligible forestry activity can be described as processes or services necessary to, or assisting in, obtaining timber as a primary produce as part of a commercial enterprise.
Therefore, diesel fuel used in a vehicle, in a forest or plantation, to supervise or manage an eligible forestry activity is an eligible activity in the meaning of 'forestry' per section 35 of the EGCSA.