Fuel tax: what is an 'enterprise' for the purposes of the Fuel Tax Act 2006?

The term 'enterprise' is defined in section 110-5 of the Fuel Tax Act 2006 (FT Act). That definition states, 'enterprise' has the meaning given by section 9-20 of A New Tax System (Goods and Services Tax) Act 1999 .

The Commissioner's views on the meaning of 'enterprise' for the purposes of the FT Act are the same as those expressed in Goods and Services Tax Determination GSTD 2006/6. [1]

GSTD 2006/6 in turn adopts, for Good and Services Tax purposes, the Commissioner's views set out in Miscellaneous Taxation Ruling MT 2006/1 The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number.

This Determination applies to the class of entities who are entitled to a fuel tax credit for taxable fuel acquired or manufactured in, or imported into, Australia, to the extent that they do so for use in carrying on their enterprise.

This Determination applies from 1 July 2006. [2] However, the Determination does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of the Determination.

If a taxpayer has a more favourable private ruling (which is legally binding), the taxpayer can rely on that private ruling if the income year to which it relates has ended or has commenced but not yet ended. However if the scheme covered by the private ruling has not commenced, and the period to which it relates has not yet commenced, this Determination applies to the taxpayer to the extent of the inconsistency only. Note: the Addendum to this Determination that issued on 15 August 2007 explains our view of the law as it applied on and from 13 December 2006.