ATO Interpretative Decision
ATO ID 2001/497 (Withdrawn)
Goods and Services Tax
GST and the supply of a car to a spouse of a person with a disabilityFOI status: may be released
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This ATO ID is withdrawn as it is superseded by the 'GST and cars purchased by eligible people with disabilities' fact sheet (NAT 4325).This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a motor vehicle dealer, making a GST-free supply under section 38-510 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a car to the spouse of a person with a disability?
Decision
No, the entity is not making a GST-free supply under section 38-510 of the GST Act when it supplies a car to the spouse of a person with a disability. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a motor vehicle dealer. The entity supplies a car to the spouse of a person with a disability.
The spouse of the person with the disability does not hold a disability certificate, issued by the relevant authority.
The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Under subsection 38-510(1) of the GST Act, a supply of a car to an individual is GST-free where the individual:
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- has a current disability certificate issued by:
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- 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
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- an officer or employee of that company who is authorised in writing by the Managing Director for the purposes of this section;
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- 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
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- intends to use the car in his or her personal transportation to or from gainful employment during all of the Subdivision 38-P period.
As the spouse of the person with a disability does not hold a current disability certificate, issued by the relevant body, the requirements of subsection 38-510(1) are not satisfied.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is not GST-free under any other provision in Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies a car to the spouse of a person with a disability.
Date of decision: 04 September 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
section 38-510
subsection 38-510(1)
Division 40
Part 2
Other References:
Fact sheet - Cars and the GST - purchases by eligible people with disabilities - Nat 4325
Keywords
Goods & services tax
GST-free
Cars for other disabled people
ISSN: 1445-2782
| Date: | Version: | |
| 4 September 2001 | Original statement | |
| You are here | 24 November 2006 | Archived |