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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1012699663866

Ruling

Subject: GST-free car for eligible veteran

Question

Are you entitled to purchase another car free of goods and services tax (GST) before the expiry of the two year period?

Decision

Yes, in your special circumstances, you are entitled to purchase another car GST-free before the expiry of the two year period.

Relevant facts and circumstances

Relevant legislative provisions

A New tax System (Goods and Services Tax) Act 1999 (GST Act):

Subsection 38-505(1)

Subsection 195-1

Reasons for the decision

Subsection 38-505(1) of the GST Act provides that a supply is GST-free if it is a supply of a car to an individual who has served in the defence forces or in any other armed force of Her Majesty and as a result of that service is a veteran to whom section 24 of the Veterans Entitlements Act 1986 applies and receives a pension under Part II of that Act and intends to use the car in his or her personal transportation during all of the Subdivision 38-P period.

Section 195-1 of the GST Act provides that Subdivision 38-P period in relation to the supply of a car to an individual means the period starting when he or she acquires it and ending at the earliest of the following times:

We consider that your situation qualifies as special circumstances.

Considering your special circumstances, we agree that you are eligible to purchase another car GST-free before expiry of the two year period since the purchase of your present car.


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