Section 38-505 of the A New Tax System (Goods and Services Tax) Act 1999 (ANTS Act) provides that a Goods and Services Tax (GST) exemption applies to the supply of a motor vehicle (or parts to modify a motor vehicle) to an individual who:
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An eligible person under the MVCS is a person who has:
If there is a breach of any of the MVCS requirements, the delegate may notify the person in writing that:
If the MRCC subsidises the purchase of a motor vehicle for a person, the person is taken to be the legal owner of the motor vehicle.
However, the Commonwealth has a chattel mortgage interest in the motor vehicle to the extent of the amount of the subsidy. The conditions attached to a chattel mortgage include the following:
The motor vehicle cannot be:
The delegate may require a person who is provided with any compensation under the MVCS to give a written undertaking to comply with any conditions set out in the MVCS, although the conditions set out in the MVCS must be complied with regardless of whether or not a written undertaking is given.
Delegations under the MVCS are contained in section 2.9.3 of this Guide.
The delegate should determine the amount of compensation that is payable, to an eligible person under the MVCS, according to what is reasonable.
In reaching this decision, the delegate will consider factors such as, but not limited to:
In line with assistance available to SRCA clients, where it is not feasible for the client’s existing motor vehicle to be modified, funding may be provided for the cost difference between a suitable vehicle (acquired by the client at their own cost) with the option (for example, automatic transmission) fitted and a vehicle of a similar model without the option (for example, manual transmission). This may occur where the vehicle is too old, technically unsuitable, not cost effective or not safe to modify.
A person will only be entitled to compensation under the MVCS if an approved program provider or a Driver Trained Specialist Occupational Therapist has made a written recommendation that they are satisfied on reasonable grounds that the person would derive benefit directly from driving or being driven in a motor vehicle. The approved program provider or Driver Trained Specialist Occupational Therapist may take into account the benefits to the person’s physical and mental health and the person’s level of mobility without access to an appropriately modified motor vehicle.
A person will not be entitled to compensation under the MVCS if they are a resident of a care institution and are not capable of leaving that institution.
A “care institution” means:
- a residential care facility;
- a hospital;
- a hospice;
- a psychiatric institution; or
- any similar institution that provides daily care for the person, but does not include the person’s private home.
A person is not entitled to compensation under the MVCS if the person receives or has received: