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6.4.2 Specific Conditions: Initial Vehicle Grants
There are a number of specific conditions under Part 4 of the VAS instrument relating to initial vehicle grants. Conditions include the requirement that the veteran registers and comprehensively insures the vehicle. Delegates must seek documentary evidence of registration and insurance arrangements.
1. Does the vehicle meet all of the following requirements?
- The vehicle is a new motor vehicle.
- The vehicle must be registered in the veteran’s name and in the jurisdiction the veteran resides.
- The veteran has not previously been provided with an initial vehicle under the VAS.
- The veteran has not received, or is not entitled, to a motor vehicle under any other scheme or settlement of a claim for damages.
2. What are the client’s responsibilities after a vehicle has been provided?
- The veteran must register the vehicle in their own name,* and in the jurisdiction in which they reside.
- The veteran must comprehensively insure the vehicle to its full market value in their own name*.
- The veteran must provide evidence of registration and insurance, as well as a copy of the dirver's licence of the person who regularly drives the vehicle, to their DVA VAS contact person or the VAS delegate.
1. The name on the registration and insurance documentation must match the name of the veteran to whom the financial assistance under the VAS is granted.
2. The insurance may be taken out in the name of the veteran and the partner or carer, but the name of the veteran to whom the financial assistance under the VAS must appear on the insurance certification.
3. What amount of grant can be provided?
- The VAS delegate must authorise payment of the retail price of the motor vehicle based on evidence received from the supplying dealer.
- The payment is limited to the retail cost of the standard model of the motor vehicle, excluding optional extras or accessories.
- The maximum value of an initial grant is currently $39,810:
- If the vehicle retails for a higher price than $39,810, the Commission will still only grant $39,810. The only exception to this rule is contained in paragraph 4, Schedule One of the VAS instrument.
4. Direct payment to the supplying dealer
The amount of the grant is to be paid directly to the supplying dealer.
5. Initial vehicles and trade-ins
A veteran is not required to trade-in or sell their privately purchased vehicle to receive an initial vehicle under the VAS.
Veterans should be advised that if they do not want to keep their privately purchased vehicle as well as their initial VAS vehicle, they must take independent steps to sell or transfer their privately purchased vehicle, and not to use it as a trade-in for the initial VAS vehicle.
This is contrasts with the replacement grant process, which requires a veteran to trade-in their VAS vehicle to be eligible for a replacement VAS vehicle.
VAS delegates should note that veterans are unlikely to be familiar with the terminology of the VAS regarding initial versus replacement vehicles. If a veteran owns a privately purchased vehicle prior to being given an initial VAS vehicle grant, they may describe their application for an initial vehicle as an application for a replacement vehicle. Delegates should clarify whether a client is applying for an initial or replacement vehicle grant before giving advice on trade-in requirements.