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6.4.3 Specific Conditions: Replacement Vehicle Grants
There are a number of specific conditions under Part 6 of the VAS instrument relating to replacement motor 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. Is the client eligible for a replacement?
All veterans who have received an initial VAS vehicle are eligible for a replacement vehicle grant. The only exception is where a veteran has received a motor vehicle under any other law or contract after receiving their initial VAS vehicle.
2. Has the required replacement period been reached?
A replacement grant may be issued two years following provision of an initial or replacement motor vehicle grant under the VAS.
3. What are the client’s responsibilities?
Prior to the provision of the grant the veteran must:
- trade-in or sell the initial or replacement vehicle provided under the VAS; and
- provide documentary evidence of the trade-in valuation of that vehicle to the Department.
The full-trade-in value or sale price must then be offset against the cost of the replacement VAS vehicle.
After the provision of the grant the veteran must, provide
- a copy of a drivers licence demonstrating that the primary driver of the VAS vehicle (the veteran, or if the veteran does not drive – their partner or carer) continues to hold a valid drivers licence; and
- evidence showing that the veteran has comprehensively insured the vehicle for it’s full market value*; and
- a payment summary or receipt showing that the replacement grant was used to purchase the replacement vehicle only, excluding any optional extras or accessories.
* Note: 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.
4. What amount of grant can be provided?
- The maximum value of a replacement grant is the difference, between the trade-in value or the sale price of the initial VAS vehicle and the purchase price of the replacement vehicle, but cannot be greater than $19,905.
- If the difference between the trade in value or sale price of the initial vehicle and the replacement vehicle is greater than $19,905, the Commission will still only grant $19,905.
- The only exception to this maximum is contained in Schedule Three of the VAS instrument.
- No grant can be made until after the Department receives a statement from the supplying motor dealer certifying the trade-in value of the previous motor vehicle.
5. Direct payment to the supplying dealer
The amount of the grant is to be paid directly to the supplying dealer.