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 (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 .
(ii) an officer or employee of that company who is authorised in writing by the Managing Director for the purposes of this section;
Pending amendment
S 38-510(1) will be amended by No 127 of 2021, s 3 and Sch 3 item 44, by substituting para (a), effective 1 January 2022. Para (a) will read:
(a) has a current certificate of medical eligibility issued by a *medical practitioner, in the *approved form, certifying that the individual has lost the use of one or more limbs to such an extent that the individual is unable to use public transport; and
View history note
Hide history noteHowever, 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.
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