Issue
Is the use of off-road diesel as a saw lubricant a qualifying use for an off-road credit under section 53 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. The use of off-road diesel as a saw lubricant is a qualifying use and is eligible for an off-road credit under section 53 of the EGCSA.
Facts
Diesel is used as a saw lubricant in thinning, felling, milling or processing of forest timber.
Thinning or felling is carried out in a forest or plantation.
Milling or processing is carried out in facilities situated in a forest or plantation.
Milling is also carried out at sawmills and chipmills not situated in a forest or plantation.
Reasons for Decision
Subsection 53(1) of the EGCSA states that you are entitled to an off-road credit if you purchase diesel fuel for a use by you that qualifies.
The Explanatory Statement to the Energy Grants (Credits) Scheme Amendment Regulations 2003 (No. 2) 2003 No. 371 relevantly provides; Paragraph 53(6)(b) of the Act provides that the regulations may specify various uses of off-road diesel fuel, other than those specifically provided for in section 53 of the Act, that qualify for an off-road credit.
Regulation 10 of the Energy Grants (Credits) Scheme Regulations 2003 (the Regulations) relevantly states that, for paragraph 53(6)(b) of the EGCSA, 'the use of off-road diesel fuel other than as a fuel is specified'.
The use of off-road diesel fuel as a saw lubricant falls within the ambit of Regulation 10, and this consequently gives rise to an entitlement to an off-road credit.