A New Tax System (Goods and Services Tax) Act 1999
A supply is GST-free if it is a supply of a * car to an individual who:
(a) has a current disability certificate issued by:
(i) the person holding the position of Managing Director of the nominated company (within the meaning of Part 2 of the Hearing Services and AGHS Reform Act 1997 ); or
certifying that the individual has lost the use of one or more limbs to such an extent that he or she is unable to use public transport; and
(ii) an officer or employee of that company who is authorised in writing by the Managing Director for the purposes of this section;
(b) intends to use the car in his or her personal transportation to or from gainful employment 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 individual; or
(b) adapting it for transporting the individual. (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) and (b) applies.
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:
For the purposes of s 370-5 in Sch 1 to the Taxation Administration Act 1953 , s 38-510(1) of the GST Act operates as if the following paragraph is substituted for paragraph 38-510(1)(a) :
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.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.