ATO Interpretative Decision
ATO ID 2006/194
Excise
Energy Grants (Cleaner Fuels) Scheme: eligibility - proportion of diesel fuel permitted in biodiesel blend
FOI status: may be released
Status of this decision: Decision Current
 CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser. |
Issue
Does the proportion of diesel that is blended with biodiesel affect the eligibility of a biodiesel blend under Part 2 of the Energy Grants (Cleaner Fuels) Scheme Act 2004 (EGCFS Act)?
Decision
No. The proportion of diesel that is blended with biodiesel does not affect the eligibility of a biodiesel blend under Part 2 of the EGCFS Act.
Facts
The entity is registered for a cleaner fuel grant under section 9 of the Product Grants and Benefits Administration Act 2000 .
The entity is licensed to manufacture biodiesel and biodiesel blends.
The entity purchases automotive diesel.
The entity blends the biodiesel it manufactures with diesel.
The entity enters for home consumption the biodiesel blend and pays excise duty at the appropriate rate.
The entity is seeking a cleaner fuel grant to offset the excise duty it pays on the blend.
Reasons for Decision
Under the cleaner fuels grant scheme an entity may be entitled to a grant for an amount of cleaner fuel that it manufactures.
A cleaner fuel, for the purposes of the scheme, is defined in subsection 4(1) of the EGCFS Act as including 'a fuel (including a fuel blend) prescribed by the regulations that complies with each applicable fuel standard for such fuel'.
Regulation 4 of the Energy Grants (Cleaner Fuels) Scheme Regulations 2004 (EGCFS Regulations) prescribes a 'biodiesel blend' as a cleaner fuel.
The term 'biodiesel blend' is defined in regulation 3 of the EGCFS Regulations:
- biodiesel blend means a fuel:
- (a)
- for use in an internal combustion engine; and
- (b)
- that is a blend, in any proportion, of:
- (i)
- biodiesel; and
- (ii)
- diesel that, if used as automotive diesel, would comply with the applicable fuel standard for automotive diesel.
It is clear from regulations 3 and 4 that there is no statutory requirement stipulating the proportions of diesel and biodiesel in a biodiesel blend.
Date of decision: 5 January 2006
Legislative References:
Energy Grants (Cleaner Fuels) Scheme Act 2004
subsection 4(1)
Part 2 Energy Grants (Cleaner Fuels) Scheme Regulations 2004
regulation 3
regulation 4 Product Grants and Benefits Administration Act 2000
section 9
Keywords
Fuel
Fuel blending
Diesel
Date of publication: 4 August 2006
ISSN: 1445-2782
|
