You can claim a GST concession for items such as:
- disc brake pads
- oil filters
- petrol filters
- liquid petroleum gas (LPG) conversion kits
- spark plugs
- water and fuel pumps
- radiator hoses
- head and tail-light globes.
Only parts that are specifically made for cars may be GST-free. Parts that are specifically made for trucks, vans, buses, motorcycles and other machinery are not GST-free.
You will still have to pay GST on:
- items that are not car parts - such as oil and grease, paint, hydraulic fluid, radiator or petrol additives, refrigerant gas, brake fluid and petrol.
- accessories - such as spoilers, mudflaps, pin striping, roof racks and CD players.
Example: GST-free sale of car parts
John has a current certificate of medical eligibility. He goes to an automotive parts and accessories store where he purchases spark plugs and brake pads for his car. The spark plugs and brake pads are GST-free for John. If John later has the spark plugs and brake pads fitted by a mechanic, the labour will be a taxable sale because it is a separate supply of labour, not a sale of car parts.End of example
Car parts supplied to you, and the cost of labour services in fitting those parts to your car:
- when your car is serviced and those parts are integral to the servicing of your car, are not GST-free
- during a repair of your car, are GST-free.
Example: GST-free sale of car parts including labour for fitting the parts
Justine sells tyres to Madge for a price that includes the cost of the labour associated with fitting and balancing the tyres. Madge also needs the brake pads in her car replaced. Madge has a current certificate of medical eligibility. The sale and fitting of the tyres and the brake pads are GST-free.End of example
Example: Taxable car parts sold as part of a service
Anna has a current certificate of medical eligibility. She takes her car to the mechanic for a routine service. In the course of the service, the mechanic changes the spark plugs in Anna’s car. The sale of spark plugs is integral to the car service and, as such, is not a GST-free sale of car parts but a taxable supply of labour services.End of example
Example: GST-free sale of car parts including labour in fitting those parts made during a car service
Jim has a current certificate of medical eligibility. He takes his car to the mechanic for a routine service, including changing the spark plugs. During the course of the service, the mechanic finds that the exhaust system needs to be replaced. While the service itself, including the fitting of spark plugs, is not a GST-free sale of car parts, the sale and fitting of the exhaust system is GST-free.End of example
Car parts purchased by a business for sale to eligible people are not GST-free for the business.
- must pay GST when it purchases the car parts and can later claim a GST credit (if registered for GST) on their activity statement
- can sell the car parts GST-free to eligible people when presented with a completed declaration.