Fuel Tax Credit: early payments and entitlement to a credit under the energy grants credit scheme

Is an entity, which has never claimed energy grants under section 15 of the Product Grants and Benefits Act 2000 (PGBAA), but which has claimed decreasing fuel tax adjustments under item 9 of Schedule 3 to the Fuel Tax (Consequential and Transitional Provisions) Act 2006 (Fuel Tax Transitional Act), able to satisfy the requirement set out in subparagraph 12A(1)(c)(i) of Schedule 3 to the Fuel Tax Transitional Act?

No. An entity which has never claimed energy grants under section 15 of the PGBAA, but which has claimed decreasing fuel tax adjustments under item 9 of Schedule 3 to the Fuel Tax Transitional Act, will not satisfy the requirement set out in subparagraph 12A(1)(c)(i) of Schedule 3 to the Fuel Tax Transitional Act.

The entity elected before 31 December 2006, in the approved form, to receive early payments under item 12A of Schedule 3 to the Fuel Tax Transitional Act.

The entity was registered under section 9 of the PGBAA for entitlement to energy grants under the Energy Grants (Credits) Scheme Act 2003 (Energy Grants Act) at the time the entity made the election to receive early payments.

The entity had purchased fuel between 1 July 2003 and 30 June 2006 for which the entity was entitled to an on-road credit in the form of an energy grant under the Energy Grants Act.

The entity has never claimed energy grants under section 15 of the PGBAA. Instead, the entity has claimed decreasing fuel tax adjustments in respect of the fuel under item 9 of Schedule 3 to the Fuel Tax Transitional Act.

The entity has acquired taxable fuel after 1 July 2006 (but before 30 June 2008) for which it is entitled to a fuel tax credit under section 41-5 of the Fuel Tax Act 2006.

The entity has claimed an early payment of the fuel tax credit under item 12A of Schedule 3 to the Fuel Tax Transitional Act.

Item 12A of Schedule 3 to the Fuel Tax Transitional Act provides for the early payment of fuel tax credits to eligible entities, in relation to taxable fuel acquired, manufactured or imported between 1 July 2006 and 30 June 2008.

Subitem 12A(1) of Schedule 3 to the Fuel Tax Transitional Act requires the Commissioner to make an early payment of a fuel tax credit to entities that meet specific requirements.

One condition, set out in subparagraph 12A(1)(c)(i) of Schedule 3 to the Fuel Tax Transitional Act requires an entity to have had an entitlement to an energy grant under the Energy Grants Act.

Subsection 15(2A) of the PGBAA specifically provides that an entity is not entitled to an energy grant for an on-road or off-road credit if the entity has already given to the Commissioner a fuel tax return that includes a decreasing fuel tax adjustment that relates to the relevant fuel.

In this case, all of the energy grants to which the entity would otherwise have been entitled have been claimed as decreasing fuel tax adjustments under item 9 of Schedule 3 to the Fuel Tax Transitional Act, and have therefore been negated by subsection 15(2A) of the PGBAA.

Consequently, the entity has not satisfied the requirement in subparagraph 12A(1)(c)(i) of the Fuel Tax Transitional Act that it was entitled to energy grants under the Energy Grants Act. Note: If an entity fails this condition, an early payment may still be payable if they meet the requirement set out in subparagraph 12A(1)(c)(ii) of Schedule 3 to the Fuel Tax Transitional Act.