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Prime Mover Magazine


Linfox takes federal court action

Transport and logistics company, Linfox, has launched a test case to clarify terminology in the Fuel Tax Act, which could see major fuel tax refunds.

The company aims to clarify the term ‘public road’ in section 43-10(3) of the Fuel Tax Act 2006 which states:

“To the extent you acquire… fuel to use, in a vehicle, for travelling on a public road, the amount of your fuel tax credit is reduced by the amount of the road user charge for the fuel.”

The road user charge is used to fund government repairs to public highways, however The Act does not define the term 'public road'.

"Currently a Linfox truck travelling on a toll road pays the road user charge for this journey even though toll road repairs are not funded by the Government," Linfox said.

"The Commissioner of Taxation takes the view that a toll road is a public road for the purposes of applying the road user charge. Linfox estimates that 10% of its journeys use a toll road.

"We have worked with the Commissioner of Taxation on this issue. In these discussions it was agreed that a court judgement would be the best way to clarify this issue.

"To illustrate our case, Linfox is contending that the M2 toll road in New South Wales does not meet the description ‘public road’ and therefore we have been incorrectly reducing the amount of fuel tax credits we have been entitled to through applying the road user charge."

According to Linfox, if the court judgement agrees with the definition suggested by Linfox, any taxpayers using fuel on any roads that do not meet the term 'public road' will be entitled to seek a refund of any fuel tax credits that have been under-claimed.

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