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Third party motor vehicle incentive payments

Information about the GST and LCT implications of a motor vehicle incentive payment (MVIP).

Last updated 30 May 2017

Motor vehicle incentive payments (MVIPs) are payments made by a motor vehicle manufacturer (this includes distributors and importers) to a motor vehicle dealer under certain circumstances.

Third party MVIPs are payments made by the manufacturer to the dealer for the sale of a motor vehicle.

This information relates to third party MVIPs resulting from floor plan arrangements (bailment), which motor vehicle dealers use to finance their trading stock.

Third party MVIPs can have GST and luxury car tax (LCT) consequences for:

See also