• 2.b. Can an eligible person with a disability purchase or lease a car GST-free?

    Non-interpretative - straight application of the law.

    Yes. A supply of a car, including a supply by way of lease, is GST-free where it is to:

    • an eligible disabled veteran who intends to use the car for their personal transportation, for the whole of the Subdivision 38-P period, that is, the earlier of two years or until the car has travelled 40,000km, or
    • a person who has a current disability certificate (as described above) who intends to use the car for their transportation to or from gainful employment for the whole of the Subdivision 38-P period, that is, the earlier of two years or until the car has travelled 40,000kms.

    The supply of a car by way of purchase is GST-free up to the car limit. Where the GST-inclusive market value of the car exceeds the car limit, GST is payable on the amount above the limit.

    When working out the GST-inclusive market value of the car, disregard any value that is attributable to modifications made to the car solely for the purpose of:

    • adapting it for driving by an eligible person with a disability, or
    • adapting it for transporting an eligible person with a disability.
      Last modified: 07 Jun 2012QC 16411