Motorcycle GST rebate scheme

Last updated: 
1 July 2020

This page briefly describes who can claim a rebate from the Australian Government to cover the cost of the Goods and Services Tax (GST) on the purchase of motorcycles and motorcycle replacement parts under the Veterans’ Entitlements Act 1986 (VEA).

What is a motorcycle?

For the purposes of this scheme, 'motorcycle' means a motor vehicle with not more than 4 wheels that is steered by means of handlebars.

Who is eligible for the motorcycle benefit?

A person is eligible for the motorcycle benefit if he or she is a veteran (including serving or former members of the Forces or members of a Peacekeeping Force), who:

  • is in receipt of the Special Rate of disability pension (commonly known as TPI) under the VEA; or
  • has lost a leg or both arms as a result of a war-caused injury or disease, or a defence-caused injury or disease; or
  • is permanently and completely unable to use a leg or both arms as a result of a war-caused injury or disease or a defence-caused injury or disease.

*Note: - The Australian Taxation Office (ATO) operates a separate scheme for the supply of motor cars or car parts free of GST to eligible disabled veterans. Information can be found in Supply of Cars or Car Parts GST-free.

What eligibility requirements do I need to receive a rebate under the Motorcycle GST Rebate Scheme?

A veteran who, on or after 1 July 2000, purchases a motorcycle on which GST is payable, and intends to use the motorcycle for his or her personal transportation (whether or not as the driver) will be eligible for the benefit.

After a person receives the motorcycle benefit (or purchases a GST-free car), the benefit will not be payable for any subsequent motorcycle purchase until:

  • 2 years have passed; or
  • the earlier purchased motorcycle (or the GST-free car) has been used to transport the person for distances totalling more than 40,000 kilometres; or
  • the earlier purchased motorcycle (or the GST-free car) is no longer fit for its ordinary use and is not insured for its replacement value; or
  • the Commission is satisfied that there are special circumstances justifying the purchase of the motorcycle.

In addition, if the Commission finds that a person owns a GST-free car during the period described in the previous paragraph, the Commission will decide that the person must repay all or part of the benefit. In effect, this means that a person cannot receive a GST-free car and a GST rebate on a motorcycle at the same time.

What eligibility requirements must I meet to receive a rebate on motorcycle parts under the Motorcycle GST Rebate Scheme?

A veteran can claim the motorcycle benefit for a motorcycle part if, on or after 1 July 2000, he or she purchases a motorcycle part on which GST is payable, and intends to use the part for a motorcycle for which he/she has received the motorcycle benefit. The benefit can be claimed for a part that:

  • is no longer fit for its purpose due to wear and tear; or
  • was destroyed, damaged or stolen and was not insured for its replacement value.

How do I apply?

An application for the motorcycle benefit must be:

How am I notified of the decision?

The Commission must notify the applicant in writing of:

  • the decision and the reasons for the decision; and
  • the applicant’s right, if dissatisfied with the decision, to request the Commission to review the decision.

What is the amount of the motorcycle benefit?

The motorcycle benefit for a motorcycle or motorcycle part is usually equal to 1/11 of its GST-inclusive market value. However, if this value is more than the 'car limit' (or 'car depreciation limit') set by the ATO, the benefit will equal 1/11 of the car limit.

For the 2020-2021 financial year, the limit is $59,136.

Can I request a review?

A person who is dissatisfied with a decision of the Commission or another person on that person’s behalf, may request the Commission to review the decision. This relates to decisions regarding the granting or otherwise of the benefit or the requirement to repay the benefit in certain circumstances.

Where the Commission has reviewed its decision on whether a motorcycle benefit should be granted, a person can apply to the Administrative Appeals Tribunal for a review this second decision. This application must be made within three months of receiving a record of the outcome of the Commission's review.