Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Ralph Willis, MP)Chapter 6 - Motor vehicles for eligible disabled persons
Overview
6.1 Item 12 of Schedule 2 of the Bills will amend the existing exemption for motor vehicles for certain persons who are unable to use public transport because of damage to one or both legs, for transport to and from work. The exemption will be extended to apply to persons who have lost the use of any of their limbs.
Summary of the amendments
6.2 To extend the operation of the existing exemption for motor vehicles for certain disabled persons for transport to and from work, so that persons who have lost the use of their arms are treated in the same way as persons who have lost the use of their legs.
6.3 The amendment will apply to dealings with motor vehicles occurring on or after 1 July 1995. [Subclause 2(2)]
Background to the legislation
6.4 Under the existing law, Item 97 of Schedule 1 to the Sales Tax (Exemptions and Classifications) Act 1992 (E & C Act) exempts motor vehicles for use by an 'eligible disabled person' for transport to and from gainful employment. An 'eligible disabled person' is a person who has a certificate from the Secretary of the Department of Human Services and Health to certify that he or she has lost the use of one or both legs to such an extent that he or she is unable to use public transport.
6.5 The exemption only applies to the taxable value of the motor vehicle under the luxury threshold, which will be $35,504 from 1 July 1995. In calculating the taxable value for these purposes, any amount attributable to the cost of adapting the vehicle for the needs of the disabled person will be omitted.
Explanation of the amendments
6.6 As noted above, the exemption in Item 97 of Schedule 1 of the E & C Act only applies to certain 'eligible disabled persons'. This amendment will omit the existing definition of 'eligible disabled person' and replace it with a broader definition. [Item 12, Schedule 2]
6.7 The effect will be that a disabled person will be entitled to purchase a motor vehicle free of tax for transport to and from gainful employment, if that person has a certificate from the Secretary of the Department of Human Services and Health which states that he or she has lost the use of any of his or her limbs to such an extent that he or she is unable to use public transport.