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Factsheet DP79 - Supply of Cars or Car Parts GST-free

Purpose

This Factsheet briefly explains the supply of cars or car parts free of Goods and Services Tax (GST) to eligible disabled veterans.

This scheme is administered by the Australian Taxation Office (ATO).

Who is eligible?

You are eligible to purchase a car or car parts GST-free if you are an 'eligible disabled veteran' (see below) and you intend to use the car for your personal transportation:

  • for at least two years; or
  • to travel at least 40,000 kilometres.

What is a car?

For the purposes of this scheme, a car means a motor vehicle (except a motorcycle or similar vehicle) designed to carry:

  • a load less than one tonne, and
  • fewer than nine passengers.

If you are eligible to purchase a car GST-free and you purchase a vehicle that is not a car (for example, a truck or van) the vehicle will not be GST-free.

*Note: - DVA operates a separate GST rebate scheme for the purchase of a motorcycle and motorcycle replacement parts. Information can be found in DVA Factsheet DP42.

Am I an eligible disabled veteran?

The ATO advises that you are an eligible disabled veteran if you have served in the Australian Defence Force or any other armed forces of a Commonwealth Country and as a result of that service you:

  • have lost a leg or both arms; or
  • have had a leg or both arms rendered permanently and completely useless; or
  • you receive a disability pension at the Special Rate under the Veterans’ Entitlement Act 1986 (commonly known as T&PI pension); or
  • you receive (or are eligible to receive) a Special Rate Disability Pension under the Military Rehabilitation and Compensation Act 2004.

Most eligible disabled veterans have a DVA Health Card — For All Conditions (Gold Card) (embossed ‘TPI’), that may be shown as evidence of their eligibility. However, if you are a cadet, officer of cadets, instructor of cadets or a ‘declared member’ and you have such a card, you are not eligible to purchase a car GST-free.

Veterans who do not have a Gold Card embossed with TPI but who have lost limbs or the use of their limbs due to service may obtain a certificate from the Department of Veterans’ Affairs confirming their eligibility.

Is there a limit to the amount of GST that can be exempted?

The ATO sets a ‘car limit’ (or ‘car depreciation limit’) on the value of a car that can be supplied GST-free. If the GST-inclusive market value of the car exceeds that limit, GST is payable on the amount above the limit. (This value does not include any value that relates to modifications made to the car to adapt it for your use.)

For the 2018-2019 financial year, the limit is $57,581.

How do I apply?

If you are an eligible disabled veteran buying a car or purchasing car parts GST-free, you need to complete a Form: Declaration for an exemption of GST on a car or car parts - disabled veterans and present it to your car or car parts supplier at the point of sale.

This form can be obtained from the ATO website. https://www.ato.gov.au/Forms/Exemption-of-GST-on-a-car---disabled-veterans/

This declaration must be kept by your supplier as the authority for supplying the car, or car parts, to you GST-free.

Australian Taxation Office

This information has been obtained from the ATO and is correct as at the date of publication. If you want to check any of the information contained in this Factsheet or obtain further explanation, you need to:

More Information

DVA General Enquiries

Phone: 1800 555 254 *

Email: GeneralEnquiries@dva.gov.au

DVA Website: www.dva.gov.au

Factsheet Website: www.dva.gov.au/factsheets

* Calls from mobile phones and pay phones may incur additional charges.

Related Factsheets

Related Forms

Disclaimer

The information contained in this Factsheet is general in nature and does not take into account individual circumstances. You should not make important decisions, such as those that affect your financial or lifestyle position on the basis of information contained in this Factsheet. Where you are required to lodge a written claim for a benefit, you must take full responsibility for your decisions prior to the written claim being determined. You should seek confirmation in writing of any oral advice you receive from DVA.

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1 July 2018