A New Tax System (Goods and Services Tax) Act 1999
Note: A Commissioner ' s Remedial Power modification is relevant to this part of the tax law. Taxation Administration (Remedial Power - Certificate for GST-free supplies of Cars for Disabled People) Determination 2020 (F2020L01079) modifies the operation of s 38-510(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and any other provisions of a taxation law whose operation is affected by the modified operation of s 38-510(1) .
The operation of the relevant provision is modified as follows:
This modification applies in respect of a supply of a car or car parts to an individual made on or after 9 December 2020.
This modification does not affect the GST-free supply of a car or car parts to an individual in relation to a person who holds a current disability certificate issued by the Managing Director of the nominated company (within the meaning of Part 2 of the Hearing Services and AGHS Reform Act 1997 ) or an officer or employee of that company who is authorised in writing by the Managing Director.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to the Taxation Administration Act 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
A supply is GST-free if it is a supply of a * car to an individual who:
(a) has served in the Defence Force or in any other armed force of Her Majesty; and
(b) as a result of that service:
(i) has lost a leg or both arms; or
(ii) has had a leg, or both arms, rendered permanently and completely useless; or
(iii) is a veteran to whom section 24 of the Veterans ' Entitlements Act 1986 applies and receives a pension under Part II of that Act; or
(iv) is receiving a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004 , or satisfies the eligibility criteria in section 199 of that Act; and
(c) intends to use the car in his or her personal transportation during all of the * Subdivision 38-P period .
However, a supply covered by subsection (1) is not GST-free to the extent that the * GST inclusive market value of the * car exceeds the * car limit .
In working out the * GST inclusive market value of the * car for the purposes of subsection (2) , disregard any value that is attributable to modifications made to the car solely for the purpose of:
(a) adapting it for driving by the person; or
(b) adapting it for transporting the person. (4)
A supply is GST-free if it is a supply of * car parts that are for a * car for an individual to whom paragraphs (1)(a), (b) and (c) apply.