COMMISSIONER OF TAXATION
The Commissioner of Taxation, Michael D’Ascenzo, gives notice of the following Rulings, copies of which can be obtained from Branches of the Australian Taxation Office or at http://law.ato.gov.au.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
FTR 2012/1 | Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in carrying on an enterprise involving ‘agriculture’ as defined in section 43-15 of the Fuel Tax Act 2006 | This Ruling explains an entity’s entitlement to a fuel tax credit under the Fuel Tax Act 2006 (FT Act) for taxable fuel it acquires or manufactures in, or imports into, Australia in relation to enterprise activities that are within the meaning of ‘agriculture’ in Subdivision 43-B of the FT Act. This Ruling applies from 1 July 2012. |
FTR 2012/2 | Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in carrying on an enterprise involving ‘forestry’ as defined in section 43-75 of the Fuel Tax Act 2006 | This Ruling explains an entity’s entitlement to a fuel tax credit under the FT Act for taxable fuel it acquires or manufactures in, or imports into, Australia in relation to enterprise activities that are within the meaning of ‘forestry’ in section 43-75 of the FT Act. This Ruling applies from 1 July 2012 |
FTR 2012/3 | Fuel tax: fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in carrying on an enterprise involving ‘fishing operations’ as defined in section 43-70 of the Fuel Tax Act 2006 | This Ruling explains an entity’s entitlement to a fuel tax credit with a nil carbon reduction amount under the FT Act for taxable fuel it acquires or manufactures in, or imports into, Australia in relation to enterprise activities that are within the meaning of ‘fishing operations’ in section 43-70 of the FT Act. This Ruling applies from 1 July 2012. |
CR 2012/84 | Fringe benefits tax: employer contributions to the Australian Construction Industry Redundancy Trust (ACIRT) | This Ruling outlines the tax consequences for those employers who make a contribution to the ACIRT, for an employee who is a member of ACIRT. This Ruling applies from 1 April 2012 to 31 March 2017. |
CR 2012/85 | Income tax: early retirement scheme – OneSteel Wire Pty Limited | This Ruling outlines the tax consequences for those employees of OneSteel Wire Pty Limited who work in the operations at Newcastle Wiremill who receive a payment under the scheme described in paragraphs 14 to 15 of the Ruling. This Ruling applies on and from 3 October 2012 to 31 December 2012. |
CR 2012/86 | Fringe benefits tax: employer clients of Baptist Financial Services Australia who are subject to the provisions of section 57, section 57A or section 65J of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) and who make use of the BFS Visa Prepaid PayCard facility | This Ruling outlines the tax consequences for those employers who are subject to the provisions of section 57, section 57A or section 65J of the FBTAA and who make use of the BFS Visa Prepaid PayCard (Paycard) facility. This Ruling applies from 1 April 2011. |
CR 2012/87 | Income tax: early retirement scheme – Centennial Park Cemetery Authority. | This Ruling outlines the tax consequences for those employees who are within the Infrastructure and Grounds Maintenance area of the Centennial Park Cemetery Authority who are employed in a Horticulturalist position and are over 45 years of age. This Ruling applies from the date of the Commissioner’s approval to 30 June 2013. |
CR 2012/88 | Income tax: Little World Beverages Limited (LWB) Scheme of Arrangement and Special Dividend. | This Ruling outlines the tax consequences for shareholders of LWB other than Anglo-Gaelic Investments Pty Ltd. This Ruling applies from 1 July 2012 to 30 June 2013 |
CR 2012/89 | Income tax: Parks Victoria Voluntary Departure Program 2012 13 Early Retirement Scheme. | This Ruling outlines the tax consequences for those employees of Parks Victoria, shown at paragraph 15, who receive a payment under the scheme described in paragraphs 9 to 39 of this Ruling. This Ruling applies from 10 October 2012 to 30 June 2013 |
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NOTICE OF ERRATUM |
Ruling Number | Subject | Brief Description |
CR 2012/82 | Income tax: research and development: membership funding for the Australian Coal Association Research Program | This Erratum corrects Class Ruling CR 2012/82 to change the page numbers to paragraph numbers in the Contents and to correct a typographical error in paragraph 47. This Erratum applies on and from 26 September 2012. |
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Overview
The Commissioner of Taxation has issued a set of rulings to clarify the tax implications of various schemes and credits under the Fuel Tax Act 2006 and the Fringe Benefits Tax Assessment Act 1986. These rulings address specific tax credits for fuel used in agriculture, forestry, and fishing operations, and outline the tax consequences for employers and employees involved in various early retirement and redundancy schemes. The Fuel Tax Act 2006 was enacted to impose a fuel tax on taxable fuel and to provide for fuel tax credits to mitigate the impact of this tax on certain industries. The objective of these rulings is to provide clarity on the eligibility for fuel tax credits for activities that fall under the definitions of 'agriculture', 'forestry', and 'fishing operations' as stipulated in the Act. These rulings are intended to ensure that entities operating within these sectors correctly claim their fuel tax credits, thereby addressing any potential gaps in compliance and understanding of the tax provisions.
Scope and Application
The Commissioner of Taxation, Michael D'Ascenzo, has issued several rulings under the Fuel Tax Act 2006 and the Fringe Benefits Tax Assessment Act 1986, as well as other income tax rulings, which collectively apply to entities and individuals involved in specific sectors such as agriculture, forestry, and fishing operations. These rulings clarify the entitlement of entities to fuel tax credits for taxable fuel used in designated activities and address fringe benefits tax consequences for employers who make contributions to certain industry-specific schemes or facilities. The rulings are applicable from various dates, ranging from 1 April 2011 to 31 December 2012, and apply across Australia. Additionally, some rulings provide specific tax consequences for certain employers and employees in unique early retirement schemes and special dividends within the construction, cemetery, and beverage industries. These rulings are instrumental in guiding taxpayers on compliance with tax obligations under the specified acts, and while they are comprehensive, any exclusions or exemptions are detailed within each ruling.
Key Provisions
The main operative sections of these Rulings include FTR 2012/1 to FTR 2012/3, which deal with fuel tax credits for taxable fuel acquired or manufactured in, or imported into, Australia for use in specific enterprises. These Rulings provide detailed explanations on the entitlement to a fuel tax credit under the Fuel Tax Act 2006 (FT Act) for enterprises involving agriculture, forestry, and fishing operations, respectively. Similarly, Rulings CR 2012/84 to CR 2012/89 outline specific tax consequences for various employer contributions and employee schemes, including the Australian Construction Industry Redundancy Trust (ACIRT), early retirement schemes, and special dividends. These Rulings cover different scenarios, such as the tax implications for employers using the Baptist Financial Services Australia Visa Prepaid PayCard facility and the tax consequences for employees in early retirement schemes within specific authorities and companies.
These Rulings impose specific obligations on entities and individuals, particularly those involved in the activities covered by the fuel tax credits and the outlined tax consequences for employer contributions and employee schemes. For example, entities engaged in agriculture, forestry, or fishing operations must ensure they comply with the requirements set forth in FTR 2012/1 to FTR 2012/3 to claim the appropriate fuel tax credits. Employers contributing to the ACIRT, using the BFS Visa Prepaid PayCard facility, or involved in specific early retirement schemes must adhere to the outlined tax consequences specified in CR 2012/84 to CR 2012/89. These obligations include accurately reporting and documenting fuel usage and contributions to ensure compliance with the relevant provisions of the FT Act and Fringe Benefits Tax Assessment Act 1986 (FBTAA).
Failure to comply with the obligations and requirements set out in these Rulings can result in various civil and criminal consequences, including penalties. For instance, incorrect claims for fuel tax credits under the FT Act could lead to penalties as outlined in the Act. Similarly, employers who fail to comply with the tax consequences for contributions to the ACIRT or the use of the BFS Visa Prepaid PayCard may face penalties under the FBTAA. The maximum penalties for these breaches can vary depending on the nature and severity of the non-compliance. It is crucial for entities and individuals to understand and adhere to these obligations to avoid potential penalties and legal repercussions.